Golden Arrow Resources (TSX-V: GRG, OTCQB: GARWF) has entered into an arm’s length definitive agreement for the sale of its 25% interest in Puna Operations to its joint venture partner SSR Mining Inc. for aggregate consideration of C$44.4 million.
Puna Operations was formed through a joint venture which combined SSR Mining’s Pirquitas mine and processing plant and Golden Arrow’s Chinchillas silver-lead-zinc project.
“The sale of our equity position in Puna Operation is a landmark achievement for the Company. The Transaction allows Golden Arrow to maintain diversified low-risk exposure to the continued success of SSR Mining at Puna Operations in Argentina and across their gold-focused producing portfolio in North America” stated Joseph Grosso, Executive Chairman, President and CEO of Golden Arrow.
The transaction provides a significant improvement to the company’s financial position going forward due to the C$3 million cash payment, the C$25.9 million shareholding in SSRM and the complete repayment of the company’s fully drawn credit facility with SSR Mining.
Golden Arrow will retain an asset portfolio with significant potential comprised of exploration and development opportunities in Chile, Paraguay and Argentina and will focus on repeating the success it had at Chinchillas by financing, exploring, developing and monetizing new mining projects
Golden Arrow is actively exploring a new portfolio of advanced projects in Chile, as well as other targets within its portfolio of more than 200,000 hectares of properties in Argentina.