- StraightUp has entered an ROE with Premier Silver Corp. that secures it 60 days of exclusivity to negotiate an agreement on the acquisition of Premier and its underlying assets
- Premier’s acquisition would give StraightUp a shot at tremendous upside potential in silver exploration and building assets where silver forms the primary product in mining the material
- Premier is a crucial player in the junior mining industry, having raised over $10 million in private funding to date
- Its main asset, the Mallay Mine & Processing Plant, is one of the largest silver mining packages in Peru
StraightUp Resources (CSE: ST) has been on a mission to expand its market reach and grow its mineral exploration domain, primarily through acquisitions. In 2021 alone, the company has added the West Cat Mine, a historic mine in Nevada, to its property portfolio. It is a significant move on its part and one that places it among some of the top players in this sector (https://ibn.fm/scIaX).
In a move to further expand this portfolio, StraightUp has announced having entered into a right of exclusivity agreement (“ROE”) with Premier Silver Corp, where the latter is set to acquire all of Premier’s outstanding shares from current shareholders (https://ibn.fm/pO4W1).
The ROE provides StraightUp and Premier with the opportunity to exclusively negotiate an agreement on the acquisition of Premier and its underlying assets over the period of 60 days. This period will involve the completion of further due diligence on any ongoing project(s) and the company itself, as well as the negotiations of the terms of a definitive purchase agreement with Premier.
Premier Silver Corp has been a significant player in the junior mining industry. Formed by a group with combined 100-plus years of experience, the company has created over $1 billion in shareholder value and raised over $700 million in capital.
In 2020, Premier concluded commercial discussions with NYSE-listed Buenaventura (NYSE: BVN) and acquired one of Peru’s largest silver mining land packages- the Mallay Mine & Processing Plant. Premier also acquired over $120 million in capitalized expenditures, coupled with Mallay’s exploration and development assets.
Located just four to five hours’ drive north of Lima, the Mallay plant was constructed between 2010 and 2011 at the cost of $128 million, making it a vital asset of the Mallay Property.
StraightUp is confident that this acquisition will provide an opportunity for further exploration while also allowing it to position itself among key mining companies within the industry.
Mark Brezer, the President and Chief Executive Officer (“CEO”) of StraightUp, reckoned, “Premier Silver is a turnkey operation while providing an opportunity for further exploration. StraightUp has again positioned itself among major mining companies and their projects.”
Peru currently has more silver resources than any other country. It is also ranked second in the world in silver production. Silver is also one of the most undervalued commodities globally, which offers a tremendous opportunity and a significant upside for StraightUp, not just in silver exploration but also in building assets where silver forms the primary product in mining the material.
“Taking a stake in a country that contains more silver resources than any other country and is ranked second in the world for production gives us a shot at tremendous upside potential, especially if we see a strong decade ahead for metals. We are optimistic our companies can synchronize to mutually benefit one another and shareholders alike,” added Mr. Brezer.
Premier was initially created to identify and acquire a de-risked project designed to offer shareholders access to silver. The company recognized that the junior mining market had started to search for projects quick to cash flow, hence its investment in Mallay. Its assets, so far, have placed the company in a unique position to offer leveraged market exposure to the silver industry, as has been demonstrated by raising over $10 million in private funding to date.
“I look forward to continuing our discussions with StraightUp in progressing due diligence and potential corporate transactions,” noted Duncan Gordon, the founder and chairman of Premier Silver Corp.
StraightUp’s board of directors has, however, not provided any assurance that the ROE will result in a corporate transaction with Premier.
For more information, visit the company’s website at www.StraightUpResources.com.
NOTE TO INVESTORS: The latest news and updates relating to ST are available in the company’s newsroom at https://ibn.fm/STR
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