J2 Metals has signed a three-year option agreement to acquire the Sierra Plata silver-antimony project from Impact Silver.
The project is a 2,200-hectare (ha) land package in the Zacualpan District near Taxco, Guerrero, Mexico and borders the mining concessions held by Grupo México and Impact Silver.
Sierra Plata encompasses several former silver-producing mines and is viewed as highly prospective for antimony, a strategic metal in global supply chains.
The property contains five historic silver mines, including El Salto and El Sabino, along with several smaller past workings.
Additional historic mines and workings lie immediately outside the project area, with lithological trends and structures continuing into the Sierra Plata claims.
The project’s key advantages include strong potential for silver and antimony and ready access to Impact’s technical expertise and regional drilling infrastructure.
J2 Metals CEO Thomas Lamb said: “We are delighted to have struck this exciting deal with Impact on the Sierra Plata Project, a large and highly prospective land package within a historic silver district.
“Under Mexican mining regulations, certain concessions require regular investment, and Sierra Plata lies outside Impact’s current production focus, creating a compelling opportunity for J2 to advance the project.”
Under the terms of the transaction, J2 will issue Impact with subscription receipts having an aggregate deemed value of C$250,000 ($181,074) within three business days of receiving TSX Venture Exchange approval.
These receipts will automatically convert into J2 common shares on the date falling four months after 19 December 2025 or the effective date.
The terms also stipulate that J2 must carry out qualifying work on the project by the first, second and third anniversary of the effective date, along with issuing common shares or cash.
J2 may fast-track its acquisition of 100% of Sierra Plata by completing the payments and making an additional C$500,000 payment to Impact, through a mix of cash and J2 shares in proportions chosen by Impact.
Impact will retain a 1.5% net smelter returns (NSR) royalty on all minerals produced from the Sierra Plata project.
J2 will have the right to buy back 50% of the NSR (reducing it to 0.75%) for C$1,500,000, exercisable at any time before or after commercial production begins.
