Arian Silver Corporation ("Arian" or the "Company"), a silver exploration, development and production company with a focus on projects in the Zacatecas silver belt of Mexico, today announces that it has signed a provisional agreement with Sandy Hill Ltd, a company incorporated in the British Virgin Islands, to acquire a processing plant currently located close to Zacatecas City, with a capacity to treat up to 1,500 tonnes per day of silver-lead-zinc ore ("EL Bote Mill").
Arian's CEO Jim Williams commented today, "I am very pleased to announce this important step forward towards achieving our stated intention of becoming a more significant silver producer from our San José project. We have already demonstrated that we have the silver, lead and zinc resources to support an expanded operation at San José and acquisition of this larger processing plant can only accelerate this aim. On acquisition, the EL Bote Mill would be reassembled in modular fashion on-site at San José which will allow us to synchronise plant construction with increased mine capacity. I have commented previously on the obvious operating efficiencies and increased revenue potential from operating a Company-owned processing plant on site at San José and I am confident that our due diligence on the El Bote Mill will confirm this".
Arian will pay an initial $100,000 to secure a 120 day due diligence period to confirm the El Bote Mill, which has a past history of treating run of mine ore from Arian's San José project, is still suitable.
The final purchase price for the El Bote Mill has been agreed at $3.12 million subject to the satisfactory results of Arian's further due diligence. This amount is well within the Company's current financing capabilities.
Upon completion of the purchase, the plant would be disassembled and relocated to an already permitted 24 hectare site on the eastern side of the San José Property. A contiguous 6 hectare plot is designated for the associated tailings dam and permitting for this is advancing and expected to be granted shortly.
Meanwhile, as previously reported Arian has commenced production at the Juan Reyes toll mill in Zacatecas and initial operating results will be highlighted in Arian's Q1 results.
Source: http://www.ariansilver.com/