Silver Valley Metals selling Idaho project to refocus on Mexico lithium and SOP project

HOUSTON (ICIS)–Brownfield exploration company Silver Valley Metals announced it has signed an asset purchase agreement for the Ranger-Page project in Idaho which will allow it to refocus efforts at its lithium and potash project in central Mexico.

The firm said the decision came after careful consideration of its options about how to move forward in the most effective and least capital dilutive way.

With two significant projects and a share structure that remains intact, the company said entering a sale with Silver Dollar Resources Incorporated was considered to be the most strategic option.

Part of the decision was based on them having continued participation in the Ranger-Page project through its 12% equity stake in Silver Dollar.

Silver Valley Metals CEO Brandon Rook said selling the Ranger-Page project will help relieve the company from having to undergo substantial capital dilution in order to meet the financial obligations it has over the next 15 months.

“We believe there is strong upside to Silver Dollar’s share value because of its tier one assets in their portfolio today. With this transaction, Silver Valley avoids diluting its shares on a 2X plus multiple and adds dollars to the treasury at the same time,” said Rook.

Following the transaction, the company said it will be in a good position to refocus efforts at its lithium and sulphate of potash (SOP) project located in the states of Zacatecas and San Luis Potosi.

Comprised of 4,056 hectares over three mineral concessions, the project’s inferred mineral resource has demonstrated that the area contains 12.3 million tonnes of SOP and 243,000 tonnes of lithium carbonate equivalent.