RE: News Release !!!I think this is another great acquisition for EXM. The deal is priced very reasonably, and structured so that most of the payments are back end weighted. This means they control the project and have the option to find a JV partner that will fund development and pay them a nice chunk of cash to recover their acquisition costs and retain a carried interest. EXM has already completed this type of deal in the past so they know what they are doing, and its an excellent strategy.
As for the property itself, Batopilas is a well known as a silver district. It looks like the particular property holdings in this deal have some high grade gold targets though, and the sampling data in the NR show encouraging values of silver and base metals.
I think this property is located to the North of MAG Silver's Don Fippi project where an intercept of 2,358 g/t silver was encountered across 1.7m earlier this year, so we may see some spec premium for EXM just on the 'close-ology' as a regional play.
As far as I am concerned, EXM is already grossly undervalued, but this latest acquisition just adds one more reason to be optomistic going forward. EXM is getting close to being the top property holder in Mexico among Canadian listed companies, and they have shown they are able to get deals done with reputable JV partners. We now have one more iron in the fire to potentially add greater value for shareholders. The market is not really paying attention but that is probably ideal for those who are buyers today.
cheers!
COACH247