Mandalay Resources has signed a definitive agreement with Aftermath Silver to sell its Minera Mandalay Challacollo (MMC) project.

MMC is the owner of Challacollo silver-gold project located in Region I (Tarapaca) of Chile.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Challacollo is an epithermal deposit which hosts silicic volcanic and associated sedimentary rocks in the Cretaceous Challacollo Volcanic Complex.

The total deal is valued at C$10m ($7.5m).

Under the terms of the agreement, Aftermath will buy 100% of MMC in exchange for consideration of up to C$7m ($5.28m) in non-contingent payment.

It will also pay a 3% net smelter returns (NSR) royalty of C$3m ($2.26m) upon commencement of production at the Challacollo project.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Of the non-contingency payment of C$7m ($5.28m), Aftermath will pay C$1m ($0.75m) this month, C$1m in December next year, and the remaining C$5m ($3.77m) in April 2021.

Mandalay Resources CEO Dominic Duffy said: “We are pleased to see the Aftermath transaction executed and the restart of an exploration campaign on the concession.

“This transaction continues Mandalay’s objective of creating value from its non-operating assets, with the previously announced transactions at Cerro Bayo and the sale of non-core concessions at Challacollo to a third party, also completed in the last quarter.

“Mandalay is now well-positioned to focus on improving operations at Björkdal and Costerfield with these projects in Chile resolved.”

The transaction is expected to complete following the satisfaction of certain closing conditions.

After completion of the transaction, Aftermath can conduct certain exploration and drilling activities on the Challacollo project.

It will also conduct an exploration campaign on existing permitted drill pads, said Mandalay.