Defiance Silver to Acquire Mexico-Focused Green Earth Metals
Defiance Silver Corp. (DNCVF) has announced a strategic acquisition of Green Earth Metals Inc. (GEMS), a private company with three drill-permitted copper-gold-silver-molybdenum projects in Mexico's Sonoran Desert. The transaction involves Defiance issuing 4,954,613 shares at C$0.0255 per share, totaling C$1,250,000, plus a C$150,000 convertible debenture investment.
The acquisition includes the Victoria, Espiritu, and Los Ocotes projects, covering 6,795.22 hectares near major operating mines including Alamos Gold's Mulatos Mine. The projects are located in the Sonoran Desert porphyry copper belt, known for hosting significant copper-gold deposits like Cananea and La Caridad.
The deal is subject to due diligence, definitive agreement execution, and regulatory approvals. At least 90% of GEMS shareholders must agree to exchange their shares, with completion expected within 75 days of the definitive agreement signing.
Defiance Silver Corp. (DNCVF) ha annunciato un'acquisizione strategica di Green Earth Metals Inc. (GEMS), una società privata con tre progetti di rame-oro-argento-molibdeno autorizzati per la perforazione nel deserto di Sonora in Messico. La transazione prevede che Defiance emetta 4.954.613 azioni a C$0,0255 per azione, per un totale di C$1.250.000, oltre a un investimento in obbligazioni convertibili di C$150.000.
L'acquisizione comprende i progetti Victoria, Espiritu e Los Ocotes, che coprono 6.795,22 ettari vicino a importanti miniere operative, tra cui la miniera Mulatos di Alamos Gold. I progetti si trovano nella cintura di rame porfirico del deserto di Sonora, nota per ospitare significativi depositi di rame-oro come Cananea e La Caridad.
L'accordo è soggetto a due diligence, esecuzione di un accordo definitivo e approvazioni regolatorie. Almeno il 90% degli azionisti di GEMS deve concordare di scambiare le proprie azioni, con completamento previsto entro 75 giorni dalla firma dell'accordo definitivo.
Defiance Silver Corp. (DNCVF) ha anunciado una adquisición estratégica de Green Earth Metals Inc. (GEMS), una empresa privada con tres proyectos de cobre-oro-plata-molibdeno autorizados para perforación en el desierto de Sonora en México. La transacción implica que Defiance emita 4,954,613 acciones a C$0.0255 por acción, totalizando C$1,250,000, además de una inversión en un debenture convertible de C$150,000.
La adquisición incluye los proyectos Victoria, Espiritu y Los Ocotes, que cubren 6,795.22 hectáreas cerca de importantes minas en operación, incluida la mina Mulatos de Alamos Gold. Los proyectos se encuentran en el cinturón de cobre porfirítico del desierto de Sonora, conocido por albergar depósitos significativos de cobre-oro como Cananea y La Caridad.
El acuerdo está sujeto a la debida diligencia, ejecución de un acuerdo definitivo y aprobaciones regulatorias. Al menos el 90% de los accionistas de GEMS deben aceptar intercambiar sus acciones, con una finalización esperada dentro de los 75 días posteriores a la firma del acuerdo definitivo.
Defiance Silver Corp. (DNCVF)는 멕시코 소노라 사막에 있는 세 개의 구리-금-은-몰리브덴 프로젝트를 보유한 사기업 Green Earth Metals Inc. (GEMS)의 전략적 인수 발표했습니다. 이 거래는 Defiance가 주당 C$0.0255로 4,954,613주를 발행하여 총 C$1,250,000에 달하며, C$150,000의 전환사채 투자도 포함됩니다.
인수에는 Victoria, Espiritu 및 Los Ocotes 프로젝트가 포함되어 있으며, 이는 Alamos Gold의 Mulatos 광산과 같은 주요 운영 광산 근처에 위치한 6,795.22 헥타르를 포괄합니다. 이 프로젝트들은 Cananea와 La Caridad와 같은 중요한 구리-금 매장지가 있는 소노라 사막의 포르피리 구리 벨트에 위치해 있습니다.
이 거래는 실사, 최종 계약 체결 및 규제 승인을 조건으로 합니다. GEMS 주주의 최소 90%가 자신의 주식을 교환하는 데 동의해야 하며, 최종 계약 서명 후 75일 이내에 완료될 것으로 예상됩니다.
Defiance Silver Corp. (DNCVF) a annoncé une acquisition stratégique de Green Earth Metals Inc. (GEMS), une entreprise privée disposant de trois projets de cuivre-or-argent-molybdène autorisés pour le forage dans le désert de Sonora au Mexique. La transaction implique que Defiance émette 4 954 613 actions à C$0,0255 par action, pour un total de C$1 250 000, ainsi qu'un investissement de 150 000 C$ en obligations convertibles.
L'acquisition comprend les projets Victoria, Espiritu et Los Ocotes, couvrant 6 795,22 hectares près de mines en exploitation majeures, y compris la mine Mulatos d'Alamos Gold. Les projets sont situés dans la ceinture de cuivre porphyrique du désert de Sonora, connue pour abriter d'importants gisements de cuivre-or comme Cananea et La Caridad.
L'accord est soumis à une due diligence, à l'exécution d'un accord définitif et à des approbations réglementaires. Au moins 90 % des actionnaires de GEMS doivent accepter d'échanger leurs actions, avec un achèvement prévu dans les 75 jours suivant la signature de l'accord définitif.
Defiance Silver Corp. (DNCVF) hat eine strategische Übernahme von Green Earth Metals Inc. (GEMS) angekündigt, einem privaten Unternehmen mit drei bohrgenehmigten Kupfer-Gold-Silber-Molybdän-Projekten in der Wüste Sonora in Mexiko. Die Transaktion beinhaltet, dass Defiance 4.954.613 Aktien zu je C$0,0255 ausgibt, was insgesamt C$1.250.000 ergibt, sowie eine Investition in eine wandelbare Anleihe in Höhe von C$150.000.
Die Übernahme umfasst die Projekte Victoria, Espiritu und Los Ocotes, die 6.795,22 Hektar in der Nähe von wichtigen Betriebsminen, einschließlich der Mulatos Mine von Alamos Gold, abdecken. Die Projekte befinden sich im porphyrischen Kupfergürtel der Wüste Sonora, der für bedeutende Kupfer-Gold-Vorkommen wie Cananea und La Caridad bekannt ist.
Der Deal unterliegt der Due Diligence, der Ausführung eines endgültigen Vertrags und den behördlichen Genehmigungen. Mindestens 90 % der GEMS-Aktionäre müssen zustimmen, ihre Aktien zu tauschen, wobei der Abschluss innerhalb von 75 Tagen nach Unterzeichnung des endgültigen Vertrags erwartet wird.
- Acquisition of three drill-permitted projects in strategic copper-gold mining region
- Projects located near major producing mines, indicating area's mineral potential
- All necessary drill permits already in place for immediate exploration
- Strategic expansion into copper-gold-silver assets diversifying from silver focus
- Non-binding LOI subject to multiple conditions and approvals
- Requires 90% GEMS shareholder approval for completion
- Projects are early-stage with no defined resources
- Share issuance will result in dilution for existing shareholders
Vancouver, British Columbia--(Newsfile Corp. - April 7, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") is pleased to announce that it has entered into a non-binding letter of intent ("LOI") with Green Earth Metals Inc. ("GEMS"), a privately held company holding a portfolio of assets in Mexico. Under the terms of the LOI, Defiance proposes to acquire all issued and outstanding shares of GEMS in a strategic transaction (the "Transaction"). The terms of the Transaction are discussed further below.
Transaction Highlights:
- Strategic Acquisition: Defiance proposes to acquire
100% of GEMS, a private British Columbia-based company founded by renowned discovery geoscientist Richard Osmond. - High-Quality Asset Portfolio: GEMS holds rights to three drill-permitted copper-gold-silver-molybdenum projects in Mexico's Sonoran Desert porphyry copper belt, covering a total of 6,795.22 hectares.
- Prime Mining Jurisdiction: The acquired projects are strategically located near Alamos Gold's operating Mulatos Mine, where the recently permitted "Puerto del Aire" mine-extension is under development. The area hosts top tier copper deposits, including the Cananea and La Caridad Cu-Mo±Au porphyry systems—two of the largest copper mines in North America.
- Significant Exploration Upside: With drill permits already in place, Defiance plans to launch a comprehensive exploration campaign, including a diamond drill program at the Victoria project.
Chris Wright, Chairman and CEO of Defiance, commented:
"This acquisition aligns with Defiance Silver's core strategy of acquiring and advancing top tier mining projects. Our goal is to develop assets that will play a leading role in the future of gold, silver, and copper mining in Mexico. The Green Earth Metals team consists of seasoned mine financiers and global mineral explorers, and we are pleased to welcome them as shareholders. Securing this portfolio of drill-ready copper-gold-silver projects in Sonora—one of the world's premier copper-gold mining jurisdictions—represents a major step forward for Defiance. This transaction strengthens Defiance's asset base, enhances its exploration potential, and reinforces our commitment to unlocking value for shareholders."
The GEMS Assets—comprising the Victoria, Espiritu and Los Ocotes project areas—offer high-grade, district-scale potential in a proven mining jurisdiction. Situated in a region known for its rich mineral endowment, these assets are surrounded by large copper, gold, and silver mines operated by leading Tier-One global mining companies.
Strategic Location Near Major Producing Mines
The GEMS assets are situated in proximity to several large, active mining operations, including:
- La India Mine (Agnico Eagle)
- Mulatos Mine (Alamos Gold)
- Dolores Mine (Pan American Silver)
- Cananea Cu-Au-Mo Mine and La Caridad Cu Mine & SXEW Plant (Grupo Mexico)
These nearby operations demonstrate the region's rich mineral potential. However, the Company and its qualified personnel have not independently verified the technical information regarding these mines and this information should not be considered indicative of mineralization on the Company's properties.
Exploration Potential
Historical exploration and sampling across the GEMS projects have identified extensive geological features indicative of a large-scale hydrothermal Cu-Au system. These findings suggest strong potential for resource expansion using modern exploration techniques.
Victoria Project — Drill-Ready Copper-Gold-Molybdenum Asset
The Victoria Project consists of two non-contiguous mineral claims totaling 1,795.22 hectares in the Sonora, Mexico mining district. This region is home to several major mining operations, including Mulatos (Alamos Gold), Dolores (Pan American Silver), and the privately owned Piedras Verdes Mine (Frontera Copper).
Victoria is located within the highly productive Sonoran Desert porphyry copper belt, an area known for hosting significant copper-gold deposits. Exploration Highlights:
- Geological indicators suggest porphyry-style stockwork and breccia-hosted Cu-Mo-Au mineralization.
- Strong phyllic alteration overprinting potassic alteration, leading to leached capping at the surface and low surface copper grades.
The Company is committed to advancing exploration efforts on the Victoria, Espiritu and Los Ocotes projects and unlocking the full potential of this highly prospective, district-scale opportunity.
Figure 1 — Map of location of Victoria, relative to large active mining operations
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2950/247526_7719e6c834216a4e_001full.jpg
Figure 2 — Photo of Victoria asset showing surface alteration of large hydrothermal system
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2950/247526_7719e6c834216a4e_002full.jpg
Espiritu Project
The Espiritu Project, located near Sahuaripa, Sonora, spans 2,711 hectares and exhibits characteristics indicative of a large, metal-bearing hydrothermal system. Despite its promising geological setting, Espiritu remains underexplored.
Espiritu is strategically positioned within the highly productive Sahuaripa region of Sonora, Mexico, approximately 100 km from several major mining operations, including:
- La India Mine (Agnico Eagle)
- Mulatos Mine (Alamos Gold)
- Dolores Mine (Pan American Silver)
Los Ocotes Project
The Los Ocotes Project is a 2,283-hectare polymetallic vein asset located within the same regional trend as the Victoria and Espiritu projects.
The project is strategically positioned less than 40 km northeast of the La India and Mulatos gold mines and approximately 18 km northeast of Minera Alamos Inc.'s Santana Mine, a heap-leach gold operation.
Note regarding nearby mines for the Espiritu and Los Ocotes Projects: The Company and its qualified personnel have not independently verified the information on these nearby mining operations and such information is not necessarily indicative of mineralization on the Company's properties.
LOI TERMS
Under the terms of the LOI, Defiance proposes to issue common shares ("Defiance Shares") to GEMS shareholders in exchange for all of the issued and outstanding common shares of GEMS (the "GEMS Shares"), based on an exchange ratio of 1 Defiance Share for every 4.52 GEMS Shares. In total, Defiance proposes to issue 4,954,613 Defiance Shares of Defiance at a price of C
Upon the closing of the Transaction, GEMS will become a wholly-owned subsidiary of Defiance.
In connection with the Transaction, Defiance has also agreed to invest in GEMS through an unsecured convertible debenture (the "Convertible Debenture") for a total amount of C
At the closing of the Transaction, the principal amount of the Convertible Debenture and accrued interest thereon will be convertible, for no additional consideration, into GEMS Shares at the option of Defiance, at a price of C
The completion of the Transaction is subject to numerous conditions customary to this type of transaction including, notably, the completion of a satisfactory due diligence on GEMS by Defiance, execution of a mutually acceptable definitive agreement between Defiance, GEMS and the shareholders of GEMS (the "Definitive Agreement") and any other ancillary agreements required to complete the Transaction, GEMS shareholders holding at least
The Transaction is expected to be completed within a delay of approximately 75 days following the execution of the Definitive Agreement.
Qualified Person
Mr. George Cavey, P. Geo, Vice-President Exploration and Director of the Company, is a Qualified Person within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained in this press release.
On behalf of Defiance Silver Corp.
"Chris Wright"
CEO and Chairman of the Board
For more information, please contact: Investor Relations at +1 (604) 343-4677 or via email at info@defiancesilver.com.
Suite 2900-550 Burrard Street
Vancouver, BC V6C 0A3
Canada
Tel: +1 (604) 343-4677
Email: info@defiancesilver.com
About Defiance Silver Corp.
Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to advance our projects through capital-efficient exploration focused on resource growth and new mineral discoveries.
Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement Regarding Forward-Looking Information
All statements, trend analysis and other information contained in this press release about anticipated future events or results constitute forward-looking information. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding anticipated benefits of the Transaction, the closing of the Transaction and the timing and terms thereof, the potential of the combined projects of both companies (the "Projects"), the satisfaction of the conditions to the Transaction; the strengths, characteristics and potential of the Transaction; growth potential and expectations regarding the timing, receipt and anticipated effects of required consents and approvals; the impact of the Transaction on Defiance, GEMS and their respective shareholders and other stakeholders; and other anticipated benefits of the Transaction.
Although Defiance believes that the expectations reflected in such forward-looking information are reasonable, undue reliance should not be placed on forward-looking statements since the Company can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information, including the risks, uncertainties and other factors identified in the Company's periodic filings with Canadian securities regulators, and assumptions made with regard to: the Company's ability to complete the proposed Transaction; the Company's ability to secure the necessary legal and regulatory approvals required to complete the Transaction; the estimated costs associated with the advancement of the Projects; and the Company's ability to achieve the synergies expected as a result of the Transaction. Forward-looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from the Company's expectations include risks associated with the business of Defiance and GEMS; risks related to the satisfaction or waiver of certain conditions to the closing of the Transaction; non-completion of the Transaction; risks related to reliance on technical information provided by GEMS; risks related to exploration and potential development of the Projects; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and indigenous groups / local communities in the exploration and development of the Projects and the issuance of required permits; the need to obtain additional financing to develop the Projects and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risk factors as identified in Defiance's filings with Canadian securities regulators on SEDAR+ (available at www.sedarplus.ca).
The forward-looking information contained in this news release is made as of the date hereof and Defiance does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The foregoing statements expressly qualify any forward-looking information contained herein.
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