Defiance Silver has revealed plans to acquire Green Earth Metals (GEMS), a privately held company with mining assets in Mexico. The deal, outlined in a non-binding letter of intent (LOI), will give Defiance Silver full ownership of GEMS. GEMS, based in British Columbia and founded by geoscientist Richard Osmond, holds valuable mining rights in a key region. This acquisition will enhance Defiance Silver’s exploration and development prospects in a top mining area.
Defiance Silver Expands its Reach in Mexico’s Sonoran Desert
GEMS controls three significant mining projects in Mexico’s Sonoran Desert, part of the famous porphyry copper belt. These projects—Victoria, Espiritu, and Los Ocotes—cover 6,795.22 hectares. They are close to Alamos Gold’s Mulatos Mine, known for its rich copper deposits. For Defiance Silver, this acquisition opens the door to vast mineral opportunities, especially in copper, gold, and silver.
Chris Wright, chairman and CEO of Defiance Silver, shared his excitement about the deal. “This acquisition aligns with our core strategy of acquiring and advancing top-tier mining projects. We aim to develop assets that will shape the future of mining in Mexico,” he said.
Exploration Plans and Strategic Acquisition Terms
The Victoria Project is one of the main assets. It covers 1,795.22 hectares and sits within the productive Sonoran Desert copper belt. This area hosts rich copper-gold deposits, offering strong exploration potential. The Espiritu Project, spanning 2,711 hectares, shows signs of a hydrothermal system but remains largely unexplored. The Los Ocotes Project covers 2,283 hectares and follows the same regional trend as Victoria and Espiritu.
Defiance Silver intends to acquire GEMS by issuing common shares. The company proposes an exchange ratio of 1 Defiance Silver share for every 4.52 GEMS shares. The total purchase price amounts to C$1.25 million. Additionally, Defiance will provide GEMS with a C$150,000 unsecured convertible debenture.
The deal is subject to conditions. These include due diligence, execution of definitive agreements, and approval from 90% of GEMS shareholders. The transaction also requires regulatory approvals from bodies such as the TSX Venture Exchange. Defiance Silver expects the deal to close within 75 days after the definitive agreement is signed.
Conclusion
This acquisition marks a major step for Defiance Silver. It strengthens the company’s position to take advantage of exploration opportunities in Mexico’s copper-gold-silver mining sector. With the Victoria, Espiritu, and Los Ocotes projects, Defiance is well-positioned to grow. As the company moves forward, it aims to expand its presence in the global mining market.
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