Aftermath Silver Completes Acquisition of 80% Ownership in the Cachinal Silver Project
Vancouver, British Columbia--(Newsfile Corp. - May 15, 2020) - Aftermath Silver Ltd. (TSXV: AAG) (OTCQB: FLMZF) (the "Company" or "Aftermath Silver") is pleased to announce that it has reached an agreement to immediately retire the $1,075,000 balance of the $1,575,000 convertible debenture which was issued to Halo Labs Inc in October, 2019 in consideration of the acquisition of the 80-per-cent interest in the Cachinal silver-gold project (See AAG news release dated October 31, 2019). To retire the obligations under the debenture, Aftermath Silver will issue 4,000,000 common shares to Halo at the conversion price of 20 cents.
Aftermath Silver is buying Halo's shares in the Chilean holding company, Minera Cachinal SA, representing 80-per-cent ownership of the project. SSR Mining Inc. holds the remaining 20% interest.
Ralph Rushton, President of Aftermath Silver commented: "I'd like to thank Halo Labs for allowing us to trigger retirement of the debenture early. Given the current precious metals market, the removal of the upcoming cash payment obligations under the debenture will allow Aftermath Silver to direct more of its treasury into the technical programs in Chile, as and when COVID restrictions are lifted."
The Company also announces that it has received proceeds of $159,150 to date related to the recent exercise of 1,326,250 warrants, which were exercisable at $0.12. An updated share structure is posted on Aftermath Silver's website here: https://aftermathsilver.com/share-structure/
About Cachinal Silver-Gold Project
The Cachinal silver-gold project is located in Chile's Antofagasta region (Region II). The project is located about 40 km east of the Pan American Highway, in a nearly flat plain at an elevation of around 2,700 m above sea level, 16 km north of Austral Gold's Guanaco gold-silver mine.
It is a low-sulphidation epithermal deposit. Shallow drilling has defined the current mineral resources principally to a depth of 150 m below surface and provides sufficient evidence to interpret the presence of high-grade shoots within the vein system extending below the base of a potential open pit. Following these high-grade shoots to depth with drilling will be the initial focus of the company's efforts to expand the silver-gold mineralization. The oxidation level bottoms at about 120 m to 150 m below surface; however, the down-dip extent of the mineralized structures remains unknown.
Completion of the updated NI 43-101 Technical Report on Cachinal continues to be delayed due to COVID-19 travel restrictions in Chile.
Peter Voulgaris, MAIG, MAusIMM, a consultant to the Company, is a non-independent qualified person as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this news release, and consents to the information provided in the form and context in which it appears.
About Aftermath Silver Ltd
Aftermath Silver Ltd is a Canadian junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on silver in Chile. The Company is focused of growth through the discovery and acquisition of quality projects in stable jurisdictions. Aftermath continues to seek new opportunities to capitalize on the current silver environment.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and Director
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
Certain of the statements and information in this news release constitute "forward-looking information" within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to interpretation of exploration programs and drill results, predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward‐looking statements. Factors that could cause actual results to differ materially from those in forward‐looking statements include, but are not limited to, changes in commodities prices; changes in expected mineral production performance; unexpected increases in capital costs; exploitation and exploration results; continued availability of capital and financing; differing results and recommendations in the Feasibility Study; and general economic, market or business conditions. In addition, forward‐looking statements are subject to various risks, including but not limited to operational risk; political risk; currency risk; capital cost inflation risk; that data is incomplete or inaccurate. The reader is referred to the Company's filings with the Canadian securities regulators for disclosure regarding these and other risk factors, accessible through Aftermath Silvers' profile at www.sedar.com.
There is no certainty that any forward‐looking statement will come to pass and investors should not place undue reliance upon forward‐looking statements. The Company does not undertake to provide updates to any of the forward‐looking statements in this release, except as required by law.
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