Silver Mines completes sale of non-core Webbs and Conrad projects to Thomson Resources

Silver Mines Ltd (ASX:SVL) (OTCMKTS:SLVMF) (FRA:SWQ) has completed the sale of the non-core Webbs and Conrad high-grade silver-polymetallic projects in northern NSW to Thomson Resources Ltd (ASX:TMZ).  Consideration for the sale comprised of: A non-refundable payment of A$800,000 to Silver Mines comprising $50,000 on the signing of the initial term sheet and $750,000 on the signing of binding agreements (both paid);  A payment equivalent to the cash rehabilitation bonds in place at completion and the replacement of any non-cash rehabilitation bonds totalling $269,000 (paid); and Share consideration of 70 million fully paid ordinary shares and 50 million options in Thomson Resources of which 35 million shares have been issued to Silver Mines (Tranche 1), 35 million shares issued to Silver Mines with a 6-month voluntary escrow (Tranche 2), and 50 million options issued to Silver Mines with a vesting date six months from the date of issue, an exercise price of $0.124 per option and an expiry date of three years from the date of issue. Each of Tranche 1, Tranche 2 and options were subject to Thomson Resources shareholder approval which was achieved on March 29, 2021.  Bowdens Silver Project progresses This sale will allow the company to focus on its flagship Bowdens Silver Project in Central West NSW, which is the largest undeveloped silver deposit in Australia. The company recently submitted its Mining Lease Application (MLA 601) for the development of the project which comprises an open-cut mine feeding a new processing plant with a conventional milling circuit and differential flotation to produce two concentrates that will be sold for smelting off-site. Annual plant capacity is designed for 2 million tonnes with a mine life of 16.5 years. Life of mine production is expected to be around 66 million ounces of silver, 130,000 tonnes of zinc and 95,000 tonnes of lead. Silver Mines market cap is approximately $248.7 million and shares today have been as much as 2.5% higher to 21.5 cents.