Benchmark Metals (TSXV: BNCH) reached a definitive agreement to acquire a 100% interest in the Lawyers gold-silver property, located in British Columbia’s Golden Horseshoe.
In a press release, the Edmonton-based miner said the deal is pursuant to a share exchange agreement that contemplates a proposed business combination with PPM Phoenix Precious Metals Corp.
By 1989, the (former) Lawyers underground gold-silver mine was operating and produced 171,200 ounces of gold and 3.6 million ounces of silver over a four-year period
As a result, PPM will become a wholly-owned, debt-free subsidiary of Benchmark, holding a 100% interest in the Lawyers property.
“We are excited to have accelerated Benchmark’s acquisition of a 100% interest in the past-producing Lawyers Gold-Silver Mine and the historically underexplored regional land package where we see great potential,” Benchmark’s CEO, John Williamson, said in the media statement. “The 2019 exploration program will continue to focus on expanding existing mineral resource zones within the highly prospective regional-scale (+)20 km Lawyers Trend while testing new discovery targets with anomalous gold-silver indicators across the 127 km2 property.”
Under the terms of the agreement, Benchmark has to complete a cash payment of $250,000, issue 12 million common shares on a pro-rata basis in exchange for all PPM common shares; and provide a 0.5% net smelter returns royalty from any production of the property.