Americas Silver Corp. has entered into an agreement with Impulsora Minera Santacruz S.A. de C.V., a wholly owned subsidiary of Santacruz Silver Mining Ltd., to acquire the San Felipe option agreement between Impulsora and Minera Hochschild Mexico S.A. de C.V. Americas Silver will have the right to acquire a 100% interest in the San Felipe property located in Sonora, Mexico, for total consideration of $15 million in cash, payable in two staged payments. 

“As we did when we acquired Scorpio Mining and the San Rafael project two years ago, we are taking a disciplined and highly accretive approach to our external growth strategy,” said Darren Blasutti, president and CEO of Americas Silver. “The San Felipe acquisition provides our shareholders with an exciting development asset at an attractive valuation, which has the potential to add material high margin production scale that further enhances the tremendous value proposition of Americas Silver.”

Blasutti said the company believes the project has the potential to move the company forward to a leading silver producer in 2018 and beyond.

The San Felipe silver-zinc-lead project is located 130 kilometers northeast of Hermosillo City, Sonora State, in Mexico. A preliminary economic assessment (PEA) was completed in 2014 and amended in June 2016, which envisioned an open pit and underground operation producing low cost silver, zinc and lead production.

The company said it will be conducting a detailed evaluation program over the remainder of the year to reassess the San Felipe property and advance the project toward a prefeasibility study.