Precious metals exploration company Allegiant Gold has completed the divestment of its Mogollon property in New Mexico, US, to Summa Silver.
Summa Silver now owns a 100% stake in the property. The deal was completed after Summa issued 8.9 million of its shares to Allegiant Gold, at $0.4579 each, to complete the $3m phase two option payment.
The shares issued to Allegiant will have a statutory hold period of four months and one day from the issue date.
With the completion of the sale, Allegiant now owns more than 13.6 million shares in Summa Silver, including all the previous payments.
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The company has so far received $6.2m in cash and shares for acquiring the Mogollon project under the option deal, which was signed in August 2020.
Allegiant Gold CEO Peter Gianulis said: “We are pleased to have owned Mogollon for close to 15 years and now turn it over to a great management and technical team in Summa Silver. It truly has been a joy working with them for the past four years. I am confident that they will be able to maximise the value of the property and, as a large shareholder in Summa, we look forward to the advancement and development of Mogollon.
“Over four years ago, we embarked on our current strategy of focusing on our flagship project, Eastside, with over 1.4 million ounces (moz) of gold and close to 9moz of silver in the inferred category. We have been able to double the inferred resource over this period of time while keeping dilution to one of the lowest in our peer group over that period of time.
“We continue to advance Eastside and strongly believe that we have the potential to significantly increase the resource size and, more importantly, increase the profitable ounces in the ground while keeping dilution to a minimum. This, in our opinion, is the single best way to increase shareholder value.”
Located 120km from Silver City, New Mexico, the Mogollon project comprises a silver-gold bearing field.
The Mogollon project hosts epithermal veins that show continuity of strike lengths of up to 4,000ft (1,219m).
It has 81 patented mining claims and 86 unpatented lode mining claims. Historically, the district is claimed to have produced 13.1moz of silver and 271,000oz of gold from 1.39 million tonnes of rock, between 1904 and 1925.
The production stopped in 1942 due to the wartime cessation of gold and silver mining in the US.
This project is considered to be under-explored with the potential to become one of the last great vein fields in the US.
Several targets have also been identified from detailed groundwork and historic data compilation of undrilled, high-grade mineralisation.
