Proactive Investors - Trident (LON:TRR) Royalties has hailed a land use deal signed by Avino Silver (TSX:ASM) for the La Preciosa project, one of the largest undeveloped silver resources in Mexico.
Operator Avino already had a mine in operation around 19 km away with all of the infrastructure in place already to process material from la Preciosa.
Last May, Trident acquired a 1.25% net smelter return royalty covering the Gloria and Abundancia veins at La Preciosa plus a 2.00% gross value return royalty covering all other areas the deposit.
In addition, Trident will receive US$8.75 million milestone payment, within 12 months of the first silver production at La Preciosa.
Adam Davidson, Trdient’s chief executive, said "2024 is off to a great start at Trident with Avino's progress at La Preciosa.
With the land-use agreement in place, Avino is moving to first production from its stockpiles while it obtains the requisite permits to commence underground production.
David Wolfin, Avino’s CEO added: “The La Preciosa mine represents a key pillar in our transformational growth strategy.
"With this long-term land-use agreement in place, we can commence hauling of old surface stockpiles to our mill for processing.
“We are now able to begin the filing of our environmental permit for underground extraction. Pending regulatory approval, we can start developing the ramp down to our initial target of the high-grade Gloria vein.”