Orex Minerals has signed an agreement with Pan American Silver to create a joint venture (JV) to further explore and develop the Sandra-Escobar project, in Durango, Mexico.
The Sandra-Escobar silver-gold project is located in the core of the Mexican Silver Trend, which is between the Tovar and Guanacevi mining districts in Tepehuanes, Durango State.
The Mexican Silver Trend is said to host some of the world’s largest silver camps and deposits, including Fresnillo, Guanajuato, La Pitarrilla, La Preciosa, Real de Angeles and Zacatecas.
Pan American Silver will take part in the JV, named Empresa Minera Sandra-Escobar, through its subsidiary Plata Panamericana.
Orex Minerals will own a 40% stake in the JV while the remaining 60% stake will be held by Pan American Silver. The parties had announced their intention to form the JV last year.
As per the deal terms, the two partners agreed to make contributions to the new JV as per their respective ownership stakes.
Orex intends to finalise an initial programme and budget with Pan American and commence work on the Project as soon as possible.
Orex president and CEO Ben Whiting said: “This is an excellent opportunity to consolidate the majority of the mineral district. There are multiple precious metal targets, as well as the existing Boleras Silver Deposit.
“We at Orex look forward to working with Pan American to advance the Sandra-Escobar Project.”
Orex Minerals said it plans to finalise an initial programme and budget with its JV partner for the silver-gold project and begin work as soon as possible.
Recently in Mexico, SilverCrest Metals acquired the El Picacho property, which is 40km north-east of the company’s flagship Las Chispas mine in Mexico.