Huldra Silver Inc. to acquire Craigmont
A multi-million dollar sale of Craigmont Mines to Huldra Silver Inc. expected to close May 1 could bring new employment opportunities to Merritt.
Huldra, a company in the business of exploring and developing high grade silver deposits, intends to commence the planning and construction of a mill for raw ore on the Craigmont property as soon as practicable after the sale and hopes to be in production by the end of summer.
Recently Huldra announced it had entered into an agreement to acquire all the shares of Craigmont for an aggregate cash value of $7,500,000 as well as the issuance of an aggregate of 372,000 common shares of Huldra with a value equal to $500,00.
Craigmont located about 10 km west of Merritt covers approximately 8,400 hectares of property and includes several mine claims and mineral leases.
“This agreement is a major milestone for Huldra,” said Huldra president Ryan Sharp. “Since March 2010, we have been reviewing our operational plans for the mining operation at Treasure Mountain and determined that the milling operations should be conducted closer to the necessary infrastructure.”
“The Craigmont Property is only 75 minutes from the Treasure Mountain Mine and all necessary road use agreements are in place for transporting the raw ore to the site for milling.”
Treasure Mountain is a historic property about 29 km northeast of Hope, which contains a rich silver vein.
The transaction agreement outlines a three-payment take over process over a two-year period allowing Craigmont Mines, currently engaged in the recovery of magnetite from the Craigmont Property to complete the recovery from its remaining reserves by Jan. 31, 2013.
“From our point of view, it’s business as usual,” said Dick Herman, one of the owners of Craigmont, explaining that work will continue for Craigmont while Huldra begins production.
“We are very pleased that the agreement allows us to work alongside Craigmont without affecting their operations while forwarding our development plans,” said Sharp.
At this point the closing of the transaction is subject to several conditions including the approval of the TSX Venture Exchange, approval of the boards of Huldra and Craigmont, and satisfactory completion of customary due diligence.
“Craigmont looks forward to developing a close working relationship with Huldra for the mutual benefit of both organizations,” said Craigmont president Barry Smythe.