The combination of Golden Arrow Resources Corp's (CVE:GRG) Chinchillas project with Silver Standard Resources Inc's (TSE:SSO, NASDAQ:SSRI) Pirquitas mine is to go ahead.
After extending the deadline by a day Golden Arrow announced that Silver Standard had exercised its option on the Chinchillas project.
The two companies will form a joint venture to combine the Chinchillas project, which is in development, with the Pirquitas mine, which is in production.
Silver Standard will be the operator of the combined assets, with a 75% stake in the joint venture (JV); Golden Arrow will have a 25% stake,
“This is a landmark achievement for our company,” said Joseph Grosso, executive chairman, president and chief executive officer of Golden Arrow.
As Chinchillas makes the transition from an exploration discovery into a mining operation, “our shareholders stand to benefit from this profile and strengthened financial position,” Grosso said.
The deal has been a long time in the making, with the details of the proposed combination first published back in September 2015.
Grosso thanked shareholders for their patience.
Construction work on Chinchillas is slates to start in the third quarter of this year. Ore delivery to the mill should start in the second half of next year.
