en.Wedoany.com Reported - Silver Hammer Mining Corp. and Stroud Resources Ltd. have formally entered into a definitive business combination agreement, a transaction that will create a new precious metals company operating under the name Silver Frontier Mining Corp. In the global asset restructuring, Mexico's Jalisco state, due to its geological potential, has become the most significant asset and growth pillar for the new entity.
The key to the merger lies in Stroud Resources holding a 100% effective interest in the Santo Domingo gold-silver deposit, a high-quality advanced asset located in the western gold-silver belt of Jalisco. Operations within Mexico are directly managed through the local subsidiary Compañía Minera San Diego y La Española S.A. de C.V.
According to the terms and technical estimates of the Santo Domingo project, the deposit provides the merged company with the most robust mineral resource base for medium- and short-term growth. Measured and indicated category resources total approximately 25.74 million ounces of silver equivalent (AgEq), with an average grade of 134.91 grams per tonne silver equivalent; inferred category resources total 13.39 million ounces of silver equivalent, with a grade of 119.56 grams per tonne silver equivalent. These data are supported by international mining disclosure standards, confirming that Mexico's underground resources will provide the company with a low-cost competitive advantage per ounce.
Alongside absorbing the Mexican assets, Silver Hammer has entered into a definitive agreement with SilverMark Resources Inc. to acquire a portfolio of Moroccan assets, including the historic Akka polymetallic mine. Consequently, the new Silver Frontier Mining Corp. will achieve operational diversification across three global mining jurisdictions: Mexico, the United States (with drill-ready projects in Idaho and Nevada), and Morocco.
Peter A. Ball, President and CEO of Silver Hammer Mining Corp., noted that this integration expands the company's corporate exposure in key regions to capitalize on the anticipated strong bull market for silver. Additionally, the Board welcomes Mr. Eric Sprott, who will become the largest shareholder of the combined company, injecting significant financial support, with a pro forma cash position expected to exceed C$10 million.
Dr. Scott Jobin-Bevans, who will serve as Vice President of Global Exploration, emphasized that the combination of Stroud's advanced silver assets in Jalisco with North American and African assets opens up multiple technical revaluation opportunities, ensuring long-term value for all investors.
