Mining & Metals
Titiminas Silver Reorganizing Madre Sierra Project and Amending Related Option Agreement
The board of Titiminas Silver (TITI.V) has approved a corporate reorganization of its flagship Madre Sierra silver project in central Peru, together with an amendment to the share purchase option agreement governing its option to buy 100% of the project, the company said Monday. The board has also authorized the registration of the three 1% net smelter return royalties granted under the SPOA against the underlying mining concessions in the Peruvian Public Registry, it added.The reorganization allocates the 18 mining concessions that comprise the Madre Sierra project (totaling 7,561 hectares) across three Peruvian companies, each holding a discrete portfolio of concessions, it said. "This structure is designed to optimize the operational, permitting and tax management of the Madre Sierra project under the Peruvian regulatory framework, and is expected to allow two of the three operating vehicles to operate under Peru's small-scale mining regime, enabling the advancement of the exploration program under the DIA permitting framework. The structure has been reviewed with Peruvian counsel and is consistent with applicable mining legislation," it added.In connection with the reorganization, the company and the selling shareholders under the SPOA have agreed in principle to enter into a new amendment. The economic terms of the SPOA, including the aggregate purchase price, the underlying payment schedule and the three 1% NSRs (3% in aggregate) granted in favour of the selling shareholders, remain unchanged. The reorganization constitutes a regulatory accommodation rather than a re-negotiation of the transaction, it said.As consideration for the new amendment, the parties have agreed that the US$450,000 cash payment originally scheduled for August 2026 will be advanced and paid upon execution of the new amendment, with the payment amount adjusted to US$430,000 to reflect the early payment. All other payment commitments and obligations under the SPOA remain in full force and effect, the company added.Shares in the company were down $0.03 or 2.5% at $1.17 in Canada yesterday.
$TITI.V