For each share of Silver Elephant, each investor will receive one share of the Minago spin out and one share of the Gibellini spin out. They will also receive two shares of Battery Metals Royalties, a unit that receives a percentage of the minerals produced at mines it doesn’t own or part of the revenues or profits generated from the sale of those minerals.
It will continue to hold the Pulacayo silver and El Triunfo gold-silver projects in Bolivia, as well as about 30% of the issued and outstanding battery metals royalty shares as a long-term investment.
As a result, Silver Elephant investors will collectively hold about 55% of the shares of the Minago spin of, 55% of the Gibellini’s and 70% of Battery Metals Royalties. About 45% of the shares of the Minago and Gibellini spinouts will be transferred to Battery Metals Royalties. Battery Metals Royalties will also hold 2% royalties on Minago and Gibellini.
The company will continue to hold the Pulacayo silver and El Triunfo gold-silver projects in Bolivia, as well as about 30% of the issued and outstanding battery metals royalty shares as a long-term investment.
Pulacayo hosts an indicated resource of 106.7 million ounces silver, 1,384.7 million pounds of zinc and 693.9 million pounds of lead, and an inferred resource of 13.1Moz silver, 122.8Mlb zinc and 61.9Mlb lead. The company is carrying out a 2,000m drill program to test several IP anomalies with assay results expected next month.
Minago Nickel hosts a measured and indicated mineral resource of 722Mlb nickel and an inferred resource of 319Mlb grading 0.74% nickel.
Gibellini has a 2018 preliminary economic assessment study (PEA) for an open pit, heap leach operation to produce 9.65Mlb/y from a measured and indicated resource of 131.3Mlb of contained V2O5 and an inferred resource of 93.8Mlb for 13.5 years following an initial capital cost of US$117 million.
Shares in Silver Elephant Mining were trading las at 23 Canadian cents, valuing the company at about C$48 million.
