Cyprium Mining Corp. has closed an acquisition agreement for 53 percent of a joint venture that owns exploitation and exploration rights of the Potosi silver mine in the Santa Eulalia District, Mexico, it announced Thursday.
The joint venture at the Potosi mine aims to complete two major projects that would rehabilitate two shafts in the mine and allow further access to all levels of the mine for operations.
Cyprium Mining Corp. has agreed to pay $2.5 million as a financial commitment consisting of an equity investment of $1.9 million into CYPVAL, a private company in Mexico that is managing the project. The remaining commitment comes in the form of a three-year loan for $600,000 at 12 percent interest.
Trafigura Mexico SA de CV has also entered into a multi-year agreement that will facilitate the purchase of concentrates from the mine
“Trafigura is pleased to start working with Cyprium Mining in order to restart the Potosi silver mine,” Comercial Manager of Trafigura, Juan Antonio Moran said. “Our relationship with the mine goes back several years and we believe the mine still has good production and exploration potential. We also look forward to evaluating other opportunities to work with Cyprium in Northern Mexico.”
