Silver Mines’ US Expansion Raises Questions on Capital and Focus
Silver Mines Limited has completed its acquisition of the Calico North Project and initiated an earn-in agreement for up to 80% of the Kramer Hills Project in California, marking a strategic expansion into a tier-one mining jurisdiction.
- Acquisition of 100% interest in Calico North Project completed
- Earn-in commenced to acquire up to 80% interest in Kramer Hills Project
- Exploration activities to begin in 2025 with drilling planned for 2026
- Transactions involve cash payments and issuance of over 60 million Silver Mines shares
- Projects complement flagship Bowdens Silver Project in Australia
Strategic Expansion into California
Silver Mines Limited (ASX – SVL) has taken a significant step in diversifying and expanding its exploration portfolio by completing the acquisition of the Calico North Project and commencing an earn-in agreement for the Kramer Hills Project, both located in San Bernardino County, California. This move introduces the company to a highly prospective and historically productive mining region in the United States, complementing its established Bowdens Silver Project in New South Wales, Australia.
Details of the Transactions
The Calico North acquisition was finalized through the purchase of 100% of California Silver Limited, the entity holding the project, from Domestic Energy Metals Corporation. Silver Mines paid a total of USD 600,000 in cash, including an exclusivity fee, and issued 39 million fully paid ordinary shares. Concurrently, the company initiated its Kramer Hills earn-in by paying USD 500,000 in cash and issuing 23.5 million shares subject to a 12-month voluntary escrow.
Under the earn-in agreement, Silver Mines can earn an initial 50% interest in the Kramer Hills Project by funding USD 3.5 million in exploration and property maintenance over two years, alongside a USD 1.25 million cash payment to a landholder. A further 30% interest can be earned through an additional share issuance valued at USD 2 million, at the company's discretion.
Exploration Potential and Future Plans
Both projects boast significant historical mineralisation with extensive untested mineralised structures. Calico North is noted for high-grade silver-barite zones near historic mines that have seen little exploration for nearly a century. Kramer Hills offers a walk-up gold target with promising lateral and depth extensions along a 7-kilometre shear zone.
Silver Mines plans to commence exploration activities this quarter, focusing on geological mapping and geophysical surveys to generate and prioritise drill targets, with drilling scheduled to begin in 2026. These efforts align with the company’s strategy to add value through low-risk, high-potential exploration assets.
Balancing Growth with Core Focus
While these acquisitions mark a pivotal expansion, Silver Mines remains committed to advancing its flagship Bowdens Silver Project, which continues to be the company’s primary focus in 2025 as it seeks development consent and mining lease approvals. The new US projects provide optionality and diversification without detracting from Bowdens’ progress.
Managing Director Jo Battershill emphasised the strategic fit of these assets, highlighting their potential to unlock shareholder value through systematic modern exploration in a tier-one jurisdiction.
Bottom Line?
Silver Mines’ US expansion adds promising exploration assets, but the market will watch closely how these projects progress alongside Bowdens’ development.
Questions in the middle?
- What initial exploration results will Silver Mines report from Calico North and Kramer Hills?
- Will Silver Mines proceed with the further 30% earn-in at Kramer Hills, and how will that impact share capital?
- How will the company balance capital allocation between its US projects and the flagship Bowdens Silver Project?
