TSX-V-listed Nord Precious Metals has entered into a definitive asset purchase agreement with fellow TSX-V-listed Battery Mineral Resources to acquire four mining leases in the Gowganda Silver Camp of Ontario, adjacent and contiguous to Nord’s existing mining leases.

Under the terms of the agreement, Nord has agreed to buy Battery Mineral’s four mining leases comprising the Gowganda silver tailings project on an “as-is where-is” basis for the consideration of $1-million cash on the closing date; $1.25-million in Nord shares on the closing date at a deemed price equal to $0.284 a share; a 3% net smelter return (NSR) royalty on the Gowganda silver tailings project; and a deferred consideration of $125-million on each of the first, second and third anniversaries of the closing date of the transaction for aggregate deferred consideration of $3.75-million.

The transaction expands Nord’s silver tailings historic resource by 2.9-million ounces.

The proposed transaction consolidates Nord’s position in one of Canada’s most prolific historical silver/cobalt districts at a time when silver prices have reached record levels, Ontario has enacted its ‘One Project, One Process’ permitting framework and the province has launched a $500-million Critical Minerals Processing Fund to expand domestic processing capacity, Nord points out in a statement.

“The Gowganda camp is an area of significant historical silver production and has documented tailings containing nearly three-million ounces of silver. Previous operators processed this material once with technology we’ve long since surpassed,” Nord president and CEO Frank J Basa says.

“The province has created the conditions for a different model. Ontario Minister of Energy and Mines Stephen Lecce talks about ending ‘ripping and shipping’ – we have the facility to do exactly that.

“Castle, Beaver and now Gowganda [are] three feed sources for an integrated operation producing refined metal in Ontario. This acquisition ensures we have the feed to meet that moment,” he avers.

“We are pleased to enter into this transaction for our shareholders, providing approximately $6-million of value along with a 3% NSR royalty. The transaction allows us to realise on the value of the silver tailings and includes royalty upside to provide ongoing exposure to the asset.

“Upon completion of this transaction, we will become a shareholder of Nord and will continue to support and encourage their efforts,” Battery Mineral CEO Laz Nikeas says in separate statement.