Silver Predator Corp (OTCMKTS:SVROF) Announces Completion Of Springer Mining Buyout

Silver Predator Corp (OTCMKTS:SVROF) announced today that it has completed the previously announced acquisition of Springer Mining Company which has its acreages spread across Nevada from Americas Bullion Royalty Corp (TSE:AMB) . The acquisition provides the Vancouver based company full ownership on Springer Mine and Mill which is a 100 percent owned subsidiary of Springer Mining Company. The deal details had first been announced on 17th December last year.

Payment Terms

 exchange of Springer Mining Company, Silver Predator Corp (OTCMKTS:SVROF) has issued 6.89 million shares of its common stock to Till Capital Ltd through its 100 percent owned subsidiary Resource Re Ltd. Till Capital has been the designated inheritor of the corporate title and assets held by  Americas Bullion Royalty Corp. This transpired when Till bought out the stock interest held by AMB as part of its own restructuring process. The value of the stock being issued has been pegged at $5 million. In addition the firm issued a promissory note for $4.5 million which bears a 4 percent interest. The term of payment on the promissory note is three years. In addition the firm has allotted royalty interest in lieu of the reminder of the proceeds for the strategic buyout to Till Capital Ltd.

Preliminary Valuation Pegged At $29.8 Million

The buyout occurred on the back of a 2013 preliminary feasibility report conducted by third party on the operations surrounding the Springer Mine and Mill property. The survey had estimated that the property’s net asset value was close to $22.8 million in earnings after tax and $29.8 million in terms of capital costs.  To arrive at the precise valuation, the sunk in cost of close to $38 million spent in modernizing the plant. On full takeover, Silver Predator Corp (OTCMKTS:SVROF) is scouting for a new partner to run the bought out ,mine operations.

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