Silver Standard takes all of Sulphurets

Vancouver — With the ink still drying on a deal that sees Silver Standard Resources (SSO-V) picking up Barrick Gold’s (ABX-T) 20% stake in the Manantial Espejo silver-gold project in Argentina, the junior has exchanged half of its newly acquired interest for 40% of Black Hawk Mining’s (BHK-T) Sulphurets gold-silver project in British Columbia.

Under the terms of the agreement, Black Hawk ups its interest in Manantial Espejo to 90%, receives $125,000 in cash and gets a net smelter royalty of 1.2% on production from any newly found gold-silver resources on the property.

In return, Silver Standard gets the 40% interest it does not already hold in the Sulphurets project. Once the deal closes, Silver Standard will hold a 10% interest in Manantial Espejo and the option to earn an additional 40% by paying US$1.5 million and spending US$4.5 million on exploration by 2002 (extendable to 2003 under certain conditions).

Earlier in the week, Silver Standard acquired Barrick’s stake in Manantial Espejo by agreeing to issue 400,000 shares to the major. Barrick will retain a 3% royalty on certain claims and has agreed to defer the payment of US$5 per oz. gold and US6 per oz. silver which was originally to be paid upon completion of the final feasibility study. This will now be payable when commercial production begins.

Manantial Espejo was discovered in 1989 and has gone on to reveal a resource of 7.9 million tonnes grading 179 grams silver and 2.9 grams gold. The estimate, including 5,000 metres of infill drilling completed last year, is under review by consulting firm Pincock Allen & Holt.