The TSX Venture Exchange approved a purchase agreement between Aftermath Silver (TSXV: AAG) and Mandalay Resources (TSX:MND) related to the Challacollo silver project in Chile.
The deal entails that Aftermath will acquire 100% of the Chilean holding company which holds title to the project. To do so, the Vancouver-based miner has to pay C$2 million in cash in different installments and C$5.5 million in Aftermath shares of up to a value of C$2.75 million and the balance in cash.
Silver-gold-zinc mineralization at Challacollo occurs in a series of sub-parallel, low-sulphidation epithermal quartz veins and brecciated quartz veins/structures
Located in northern Chile, Challacollo is a low-sulphidation epithermal deposit which hosts a historic mineral resource of 30 million silver ounce indicated (4.7 million tonnes at 200 g/t silver) and a 6.9 million silver ounce inferred (1.6 million tonnes of 134 g/t), with associated gold credits.
According to Aftermath, previous drilling concentrated on the principal vein to a depth of about 200 metres below surface.
“Aftermath will focus its initial exploration efforts on parallel vein systems, not included in the historic mineral resource, that have some preliminary drilling,” the company’s CEO, Ralph Rushton, said in a media statement. “The oxidation level bottoms at approximately 200 metres below surface; however, the down-dip extent of the mineralized structures remains unknown.”