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AbraSilver Announces Strategic Investments by Kinross Gold and Central Puerto

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AbraSilver Announces Strategic Investments by Kinross Gold and Central Puerto
AbraSilver Announces Strategic Investments by Kinross Gold and Central Puerto
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AbraSilver announced that it has entered into agreements for a private placement with two strategic investors totaling C$20 million. These shares will be purchased by Kinross Gold Corporation and an affiliate of Central Puerto, an Argentine power generation company, each share at a price of C$0.40.

By Panorama Minero

John Miniotis, President and CEO of AbraSilver, commented, “We are very excited to welcome Kinross and Central Puerto as significant shareholders and partners. With this transaction, AbraSilver is well-funded to pursue a dual strategy: on one hand, pushing the Diablillos project towards a production decision, and on the other hand, accelerating our exploration efforts. The company also gains access to deep technical expertise in mineral exploration, mine development, and power generation. We look forward to working closely with our new partners as we move forward in the development of our high-quality Diablillos silver-gold project.”

Rob Bruggeman, Chairman of AbraSilver, said, “The strategic investments by Kinross and Central Puerto represent a strong endorsement for the Diablillos project and our technical team. The exploration team has successfully increased Mineral Resources and Reserves at the project, and we look forward to unlocking additional value at Diablillos and potentially other projects in Argentina. We aim to leverage our relationships with Kinross and Central Puerto as we continue to grow as a company.”

The company will use the proceeds from the private placement for exploration and development of its flagship project, the Diablillos project in Salta province, as well as for working capital and other general corporate purposes.
** Key aspects of the partnership**

Central Puerto is the largest private power generation company in Argentina, with a track record of over 100 years in the energy industry. Meanwhile, AbraSilver and Kinross plan to form a regional partnership to explore and acquire new projects in Argentina focused on silver, gold, and copper.

Once the private placement closes, AbraSilver will grant Kinross a Right of First Offer (ROFO) to acquire at least 50% of newly staked or acquired projects in Argentina beyond Diablillos. For any projects where Kinross exercises its ROFO, Kinross and AbraSilver will establish an exploration program and budget, and enter into a joint venture agreement with standard funding and dilution mechanisms.

Published by: Panorama Minero

Category: News

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