SILVERCO MINING CORP entered into a binding agreement to acquire CUSI PROJECT IN MEXICO from Sierra Metals Inc. for $2.5 million.

SILVERCO MINING CORP entered into a binding agreement to acquire CUSI PROJECT IN MEXICO from Sierra Metals Inc. (TSX:SMT) for $2.5 million on May 22, 2024. As a part of consideration, SILVERCO MINING CORP will pay $2.5 million in cash consideration at closing and a 2.0% net smelter royalty in respect of the Cusi Mine granted in favor of Sierra Metals. SMC will have the right to purchase half of the Royalty (being 1.0%) at any time in exchange for a cash payment to Sierra Metals of $5 million.

The Transaction is subject to entering into a definitive agreement in respect of the transaction and the satisfaction or waiver of all conditions thereunder and the receipt of any applicable regulatory approvals and is expected to complete in the second quarter of 2024. SCP Resource Finance LP acted as a financial advisor and Mintz LLP and RB Abogados acted as legal advisors to Sierra Metals Inc.