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(Kitco News) - Investors can expect to see more strategic partnerships and joint ventures in the mining sector as smaller companies look for sustainable capital flows, according to one mining executive.

In late May, Golden Arrow Resources (TSX.V: GRG) announced that it had completed a joint venture agreement with Silver Standard (TSX: SSO) to develop the Chinchilla Silver project in Argentina.  As part of the agreement, Golden Arrow will receive a 25% stake in the mine, while Silver Standard operates the mine with a 75% stake.

The agreement also provides Golden Arrow with a 25% stake in Silver Standard’s Pirquitas mine.

Joseph Grosso, president and CEO of Golden Arrow, said in a recent interview with Kitco News that this venture provides major benefits for both companies. He explained that his company is getting about $1 million a month from this agreement and Silver Standard is able to expand its Argentine mining operations for at least another 8 years once the Chinchilla project is in production, which is expected to be in mid-2018.

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