Silver Valley Metals Corp. (TSXV: SILV) (OTCQB: SVMFF) has signed an asset purchase agreement with Silver Dollar Resources Incorporated. Silver Dollar will acquire the Ranger-Page Project in Shoshone County, Idaho, USA.

The board considered moving the company forward effectively with minimal capital dilution. The sale to Silver Dollar was seen as the most strategic option.

Silver Valley can remain financed without share dilution, retain royalties, and participate in the project’s upside with an approximate 12% equity stake in Silver Dollar. The company’s equity in Silver Dollar also offers potential benefits from Silver Dollar’s flagship La Joya project in Mexico.

Silver Valley Metals to Benefit Financially

The transaction allows Silver Valley to refocus on its Mexi-Can lithium/sulphate of potash project in Mexico, which has significant expansion potential. With the transaction’s proceeds, the company can build out its project portfolio.

Statement from CEO Brandon Rook

Brandon Rook, CEO, commented: “Selling the Ranger-Page Project allows us to avoid capital dilution and focus on our core Mexi-Can project. The structure of this transaction also lets us benefit from Silver Dollar’s future success.”

About Silver Dollar’s La Joya Project

Silver Dollar’s La Joya project is in Mexico, 75 kilometers southeast of Durango. It has a large historic resource with over 100 million silver equivalent ounces. Additional drilling has expanded the resource.

Transaction Summary

Silver Valley will assign the Ranger-Page Project assets to Silver Dollar for CAD$300,000 in cash and six million common shares of Silver Dollar. These shares will be distributed over a scheduled period.

Silver Valley will cast votes in support of Silver Dollar’s board recommendations and will not support unendorsed shareholder proposals or takeover bids.

Silver Dollar will grant Silver Valley royalties from the Government Gulch and Page Mine properties if certain options are exercised. The agreement includes customary representations and warranties.

Details of the Government Gulch and Page Mine Agreements

Silver Dollar must pay US$250,000 and incur US$1,210,000 in exploration expenditures by October 18, 2025, to exercise its option for a 75% interest in the Government Gulch property. Silver Dollar can acquire the remaining 25% through negotiations or a preset price.

For the Page Mine Agreement, Silver Dollar will pay US$30,000 annually, with an option to purchase the property for US$1,500,000 minus previous payments.

The transaction is expected to close by July 31, 2024.

About Silver Valley Metals

Silver Valley Metals Corp. is focused on strategic and precious mineral properties, including lithium-potash in Mexico and silver-zinc-lead in Idaho, USA. The company leverages experienced exploration, mining, and financing specialists.

Timothy Mosey, BSc, MSc, SME, is the qualified person as defined by National Instrument 43-101 for Silver Valley Metals.

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