Americas Silver`s stock surges after $42m boost

According to Mining News Pro - Sandstorm is to receive 32,022 oz. of gold over 5.5 years beginning in April 2020. Beginning five years after the first gold delivery, the company will receive 4.0% of the gold and silver output as long as the mine operates. Sandstorm will also have a 1.4% to 2.8% net smelter returns royalty on any future production from the area surrounding the mine plus a 4-km “area of interest.”

Americas Silver also announced the closing of the acquisition of Pershing Gold Corporation, originally announced in September, 2018.

The Relief Canyon mine is a former heap leach gold producer. As of May 2018, proven and probable reserves totaled 27.5 million tonnes of 0.72 g/t gold material for 635,000 contained oz. The feasibility study released at the same time outlined average annual production of 91,000 oz. of gold over a 5.6 year mine life at an average all-in sustaining cost of $801 per ounce of gold. There is significant exploration potential at Relief Canyon, as only approximately 20% of the 11,700 hectare land package has been explored to date.

Americas Silver has received permits to start construction and resume mining with the first gold pour targeted by the end of 2019.

By market close on Thursday, Americas Silver`s shares were trading on the TSE at C$2.55, up 23.19% on the day. The company has a $115.75 million market capitalization.