Steele Resources Corp has executed formal documents for the acquisition of the privately owned Billali gold and silver mine located in New Mexico, US.

The Billali mine is located adjacent to Santa Fe Gold’s Summit mine, which is currently producing gold and silver.

Steele Resources Corp chief executive officer Scott Dockter said that the company is currently working to complete the transfer of the existing mine permit into the company’s name, and to begin development of the new mine workings.

"After a brief ramp up period, the Billali Gold and Silver mine is forecasted to operate at a rate of 200t per day," said Dockter.

"The total production values will be determined once the formal mine plan has been approved and financing is completed."

The company is planning to close on $5m in debt financing that will finance the mining operation.

The operation is fully permitted in the state of New Mexico, although Steele Resources will still need to ensure the existing mining operation complies with all local, federal, and mine health and safety regulations before it can commence operations.