Whitehorse Gold has agreed to purchase a 100% stake in a private Bolivian incorporated mining company (Tin Company) from its three shareholders (vendors), including Bolivian nationals and arm’s length parties.
The agreements, with a total consideration of $3.65m, have been signed by Whitehorse Gold’s wholly owned subsidiary, Stannum Metals.
Tin Company’s primary asset is a tin-zinc-silver-lead polymetallic mineral project located in the Oruro Department, Bolivia.
The property was subjected to some small-scale, historic mining. In 1999, the property was explored and drilled by Rio Tinto.
Under the agreed terms, Whitehorse will initially make a non-refundable fee of $100,000 to the vendors to support the drill programme on twin two historical holes at the property, which is scheduled over the next three months.
Upon satisfactory drill results, Whitehorse Gold will pay another $400,000 to the vendors to acquire a 100% interest in the Tin Company.
Whitehorse will pay $1.25m on the first anniversary of the agreement, $1.25m on the second anniversary of the deal, and an additional $500,000 cash payment or issue Whitehorse Gold shares.
Whitehorse Gold CEO Gordon Neal said: “Tin is a green metal and an essential component in every electronic circuit board made in the world. The tin market has seen exponential gains in the past couple of years and is projected to see further growth as electrification with decarbonisation advances globally.
“With our team’s previous successful experience in exploring in Bolivia, we believe that this tin project will be another successful exploration venture.”
In the event of Whitehorse failing to make the complete payment, the 100% stake will be returned back to the vendors.
The deal is conditional on regulatory approval and other conditions.