As of December 16th, 2019, Avino Silver & Gold Mines Ltd. sold the Bralorne Gold Mines to Talisker Resources Ltd.
For more information visit the website of Talisker Resources Ltd.
Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American, GV6: FSE), (“Avino” or “the Company”) is pleased to announce that further to its press release dated November 21, 2019, it has closed the agreement with Talisker Resources Ltd. (“Talisker”) for the sale of all of the issued and outstanding shares of Bralorne Gold Mines Ltd. (“Bralorne”) to Talisker (the “Transaction”) for:
- A cash consideration of C$8.7 million;
- The issuance of 12,580,000 common shares of Talisker (the “Talisker Shares”) which currently are trading at a price of C$0.235 per Talisker Share on the Canadian Securities Exchange;
- The issuance of 6,290,000 share purchase warrants (the “Talisker Warrants”) exercisable at $0.25 per share for a period of three years after the Closing Date, subject to acceleration in the event the closing price of Talisker’s common shares is greater than $0.35 per share for 20 or more consecutive trading days at any time following April 14, 2020;
- A cash payment of US$2.5 million, contingent upon the commencement of commercial production at the Bralorne Mine; and
- The transfer of all future restoration and reclamation obligation liabilities to Talisker.
As a result of the Transaction, Avino acquired the Talisker Shares, being 9.9% of the total issued and outstanding shares of Talisker, and the Talisker Warrants on a non-diluted basis, and approximately 14.85% of the total issued and outstanding shares of Talisker, assuming exercise of the Talisker Warrants. The Talisker Shares and Talisker Warrants were acquired by Avino for investment purposes. Avino has a long-term view of its investment in Talisker, and fully supports Talisker’s continued exploration and development of the Bralorne mine property.
David Wolfin, President and Chief Executive Officer of Avino commented, “We are pleased to announce the closing of this agreement with Talisker to transfer Avino’s ownership of Bralorne while retaining material economic exposure to the project through a significant equity investment in Talisker and the contingent cash payment payable upon the commencement of commercial production. We believe that Bralorne is best suited for a management team with deep exploration expertise and access to strategic investment capital from partners such as Osisko Gold Royalties (OR: TSX & NYSE) and we look forward to seeing them advance their exploration strategy at Bralorne as a supportive shareholder. This transaction repositions Avino as a pure-play silver producer in Mexico and greatly improves our balance sheet and liquidity. We believe that Avino is vastly undervalued relative to our silver peers based on our silver equivalent production profile and extensive resource base. Now with our improved financial position resulting from this transaction, we can focus our efforts on creating value in Mexico through exploration and other initiatives. Finally, I would like to thank all our staff and contractors at Bralorne for their dedication and professionalism over the years”.
Avino’s early warning report will appear on Talisker’s profile on SEDAR at www.sedar.com and may also be obtained by contacting Avino’s head office as shown in the letterhead above.
Cantor Fitzgerald Canada Corporation is acting as Avino’s financial advisor for this transaction and Harper Grey LLP is acting as its legal advisor.