Zacatecas optioned to DefianceIMPACT Silver Corp.
TSX VENTURE :
IPT
August 25, 2011 11:00 ET
IMPACT Silver Corp. Options Zacatecas Assets to Defiance Silver Corp.
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2011) -IMPACT Silver Corp. ("IMPACT") (TSX VENTURE:IPT) is pleased to announcethe signing of an agreement with Defiance Silver Corp. ("Defiance")(TSX VENTURE:DEF) to option its Veta Grande Project assets in Zacatecas,Mexico in exchange for a major shareholding in Defiance.
The Zacatecas Veta Grande Project assets include the200-tonne-per-day ("tpd") Santa Gabriela processing plant, surfacerights, 10 mineral concessions owned 100% by IMPACT and three mineralconcessions owned 27% by IMPACT but subject to a right of first refusalfor acquisition by joint venture partner Silver Sun Resource Corp.
The option agreement consists of two staged payments toIMPACT totaling 6,675,000 common shares of Defiance which will representa major shareholding in Defiance. The initial payment of 1,668,750common shares of Defiance is to occur on or before 90 days from thesigning of the option agreement. The second and final payment of5,006,250 common shares of Defiance is to occur on the final closingdefined as on or before the earlier of two (2) years from signing of theoption agreement or on achieving commercial production at the SantaGabriela mill. Commercial production is defined as production of 160tonnes in a 30 consecutive day period. During the term of the option,Defiance will be the operator responsible for carrying out work programsand maintaining the assets in good standing under terms of an operatinglicence with IMPACT. This includes an existing operating permit for theprocessing plant that requires a schedule of upgrades to be completedto keep it current. Defiance is also required to complete a financingfor a minimum of $1,500,000 prior to the final closing. This agreementis subject to approval by the TSX Venture Exchange. The potentialcreation of a control block is subject to approval by the shareholdersof Defiance.
IMPACT management feels that signing this option agreementwill unlock the value of these non-core assets for IMPACT in the form ofa major shareholding in Defiance, a junior company with excellentmanagement and a purposeful plan to advance these assets along withplans for additional acquisitions. This arrangement will also allow theCompany to focus its resources on expanding its flagship miningoperations at the Royal Mines of Zacualpan Silver District and, in theimmediate future, the Capire Mine Development Project, scheduled forproduction in late 2011 as well as developing other projects andopportunities.
IMPACT Silver Corp. is a profitable silver-focused mining andexploration company operating in Mexico with a producing silveroperation at the 423-square-kilometer Royal Mines of Zacualpan District;the adjacent 200-square-kilometer Mamatla Mineral District whichincludes the Capire Mine Development Project; and a portfolio ofprojects with an operational processing plant at Zacatecas under optionto Defiance Silver Corp. Additional information including details of theZacatecas assets can be found on the Company's website at www.IMPACTSilver.com.
On behalf of the Directors of IMPACT Silver Corp.,
Frederick W. Davidson, President & CEO