Silver Mining Co. Comes to Agreement for Revenue-Virginius Mine

Silver X Mining Corp. (AGX:TSX.V) has announced its intention to acquire the Revenue-Virginius mine and other assets located in the San Juan Mountains near Ouray, Colorado. The TSX Venture Exchange accepted documentation for an asset purchase agreement, forming a part of the company's application for acquisition. 

The company will make aggregate cash payments, up to a total of US $4.5 million, according to a series of situations, including US$200,000 once the purchase asset agreement has been executed and US$1 million upon the closing of the transaction.

Aurcana had previously aimed to make the Revenue-Virginius mine profitable again but failed in the endeavor, which led to the company collapsing. Aurcana has spent tens of millions of dollars on the mine in its attempt to make it profitable, meaning Silver X is taking it over in a strong position. 

Analyst Timothy Lee of Red Cloud Securities said that the move to acquire Revenue-Virginius is a positive one for Silver X Mining because the mine is "past-producing" and that it could "easily be brought back online." 

According to its website, Silver X Mining is "a rapidly expanding silver developer and producer in the Americas." It aims to consolidate and develop undervalued assets and owns 20,000+ hectares of land in Peru, which is comprised of the Nueva Recuperada Silver District and a 720 tpd processing plant.

The company produces silver, gold, zinc, and lead from the Tangana Mining Unit. As well as the Nueva Recuperada Silver District project, Silver X operates the 2,000-hectare Coriorcco Gold Project in Ayacucho, which is in its exploration phase, and is focused primarily on gold. 

Analyst Timothy Lee of Red Cloud Securities said in an April note that the move to acquire Revenue-Virginius is a positive one for Silver X Mining because the mine is "past-producing" and that it could "easily be brought back online." He also said that a feasibility study conducted in the recent past shows the mine producing "17.7 Moz of payable Ag eq over a 6.25-year life, including average annual production of 3.1 M z Ag eq for the first five years, at an all-in-sustaining cost of US$11.01 per ounce of Ag eq."

Silver Demand Continues

Peter Hobson of Ahead of the Herd wrote that global demand for silver 'rose by 18%' in 2022 and was undersupplied by 237.7 million ounces. Hobson stated that, according to the Silver Institute, more shortages can be expected. The Institute itself referred to it as "possibly the most significant deficit on record."

Technical Analyst Clive Maund said, "The picture remains quite strongly positive with the sector starting to take off higher" and that there is "plenty of upside potential." 

There are several reasons behind the demand for silver. Possibly the most pertinent is its integral role in solar energy technology as the planet shifts slowly to a greener, more sustainable future.

The Silver Institute cites it as the world's best conductor and says that it plays an important role in photovoltaic (PV) technology, which is the top source of green energy.

As green technology advances, so too will the demand for silver. 

Spotlight on Silver X Mining and Upcoming Catalyst

Silver X says that it's committed to adding resources in a cost-effective manner through efficient drilling and developing galleries. 

Its large land package also offers plenty of opportunity, and it has recently enjoyed eight consecutive months of increased processing, on a 3-month moving average from January 2022. 

Silver X Mining President and CEO José García said the move to acquire the Revenue-Virginius Mine "complements Silver X's growth strategy by adding an advanced-stage exploration project to our pipeline at an attractive price." He added that the company believes the project will benefit from its "distinct approach to exploration aimed at generating value by reactivating past producing districts with good potential."

He said that the company's focus remains in Peru, but it aims to "execute an exploration program over the next 12-18 months to confirm and strengthen the data" and its understanding of the "potential resource."

Simply Wall Street asserted that the company is "possibly approaching a major achievement in its business." 

In terms of coverage, Silver X has garner the attention of multiple analysts and newsletter writers.

When discussing Silver X Mining in a March update, Technical Analyst Clive Maund said, "The picture remains quite strongly positive with the sector starting to take off higher" and that there is "plenty of upside potential." 

Simply Wall Street asserted that the company is "possibly approaching a major achievement in its business." 

In April, Caesar's Report noted that there is "an existing resource estimate on the mine with 1 million tonnes in the measured and indicated resource categories and 320,000 tonnes in the inferred resource category." It also mentioned that the total silver content across all categories is around 30 million ounces, as well as "an additional 55 million pounds of zinc and 117,000 million pounds of led as by-products."

Silver X Mining has big plans for 2023. It aims to file an Environmental and Social Impact (ESIA) Statement to expand capacity from 720 tpd to 2,500 tpd. The company will also continue drilling at Tangana and throughout the district in order to increase and upgrade its resources. Silver X also plans to commence development of the Plata Mining Unit, with an aim to bring it online in 2024/2025. 

Ownership and Share Structure

Headquartered in Vancouver, management and insiders at Silver X owns 17% of shares. President and CEO José García owns 8.67%, with 13.64 million shares. VP of Corporate Development and Director Sebastian Wahl owns 8.17%, with 12.87 million.

12.39% is held by strategic investor Baker Steel Resources Trust Ltd., with 19.50 million shares, per Thomson Reuters. 

Institutional investors hold 9.56% of the company's stock, according to Reuters. U.S. Global has 5.31%, with 8.36 million shares. Earth Resource Investment Group has 3.07%, with 4.83 million, and Sprott Asset Management LP has 1.18%, with 1.85 million. 

The rest is in retail.

At the end of 2022, the company reported CA$1 million in the bank.

Silver X has 157.7 million shares outstanding, including 174.3 million fully diluted shares. It has 16.5 million warrants, stock options and RSUs.

There are 8,147,827 outstanding warrants, at an average price of CA$0.379 each. It trades trades in the 52-week range between CA$0.17 and CA$0.48, and has a market cap of CA$57.6 million.

Important Disclosures:

1) Lauren Rickard wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

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