OTTAWA, ONTARIO -- (Marketwired) -- 08/26/13 -- Aura Silver Resources Inc. (TSX VENTURE: AUU) ("Aura Silver" or the "Company") is pleased to confirm that the Aura Silver / Intrepid Mines Ltd. joint venture ("Taviche JV") has received the payout of US $2.0 million net of prior concession fees owed to Pan American Silver Corp. ("Pan Am") as announced in Press Release #13-02 of July 16, 2013. The payment was triggered by the completion of Pan Am's sale of the West Taviche concession to Fortuna Silver Mines Inc. and is in accordance with the agreement between the Taviche JV and Pan Am which was completed in April 2012. The April 2012 agreement allowed Pan Am to retain a 100% ownership of West Taviche with the proviso that upon a sale of an interest greater than 70% in the property, US $2.0 million would be paid to the Taviche JV. In turn, the Taviche JV received a 100% ownership interest in the East Taviche concession where the Taviche JV has had the greatest amount of drilling success. Pan Am retains a 1.5% net smelter royalty in respect of East Taviche.
The net payment of approximately US $1.85 million was split between Aura Silver and Intrepid based on their current shares of the Taviche JV resulting in a final payout of approximately US $1.3 million to Aura Silver. The payment relieves Pan Am of any further obligations to the Taviche JV with respect to West Taviche.
Aura Silver plans to utilize these funds to advance exploration at both the East Taviche and Greyhound properties and for general corporate and working capital requirements.
Additionally, in connection with completion of this transaction, the title to the East Taviche concession was transferred from Pan Am's Mexican subsidiary Plata Panamericana S.A. de C.V. into the name of Aura Resources Mexico S.A. de C.V., the Company's wholly-owned subsidiary, through which operatorship of the Taviche JV is conducted.
About Aura Silver
Aura Silver is a TSX Venture listed company engaged in the acquisition, exploration and development of precious metal prospects in Canada (100% owned Greyhound project) and in Oaxaca, Mexico. Aura Silver has 101,680,844 common shares outstanding.
This press release may contain forward looking statements that are made as of the date hereof and are based on current expectations, forecasts and assumptions which involve risks and uncertainties associated with our business including the uncertainty as to whether further exploration will result in the target(s) being delineated as a mineral resource, capital expenditures, operating costs, mineral resources, recovery rates, grades and prices, estimated goals, expansion and growth of the business and operations, the private placement financing activities of the Company, plans and references to the
Company's future successes with its business and the economic environment in which the business operates. All such statements are made pursuant to the 'safe harbour' provisions of, and are intended to be forward-looking statements under, applicable Canadian securities legislation. Any statements contained herein that are statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution readers of this news release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company's most recent annual MD&A and the Company's continuous disclosure documents that can be found on SEDAR at www.sedar.com. Aura Silver does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
President and CEO
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