Shafter Silver Acquisition Poses Execution and Market Risks for James Bay Minerals

Strategic Acquisition in a Premier Jurisdiction

James Bay Minerals (ASX – JBY) has announced a binding agreement to acquire the Shafter Silver Project, a high-grade silver asset located in Presidio County, Texas. This acquisition includes an estimated $150 million worth of existing mine and processing infrastructure, positioning the company to leverage a rare opportunity in one of the United States’ most favorable mining jurisdictions.

Situated just over the border from Mexico, the Shafter Project is considered a northern extension of the prolific eastern Sierra Madre Belt, a region renowned for world-class silver deposits. The project boasts a significant historical production record, having yielded over 35 million ounces of silver at an exceptional average grade of 521 grams per tonne between 1883 and 1942.

Robust Resource Base and Infrastructure

The project’s historical metallurgical test work indicates silver recoveries of approximately 85.4%, underscoring the quality of the ore and processing potential. The existing infrastructure includes a mill, refinery, warehousing, and administrative facilities, all constructed in 2012, which provide a strong foundation for rapid development. Power and water rights are secured, further enhancing operational readiness.

James Bay Minerals plans to fund the acquisition through a two-tranche placement raising A$30 million, which has received strong support from both offshore and domestic institutional investors. Canaccord Genuity acted as lead manager for the placement, reflecting confidence in the company’s growth strategy.

Corporate Evolution and Leadership

Following the acquisition, James Bay Minerals will rebrand as Black Bear Minerals (ASX – BKB), signaling a new chapter focused on growth and development. The company has appointed Dennis Lindgren, formerly of Alcoa, as Chief Executive Officer to spearhead the next phase of expansion. Lindgren’s expertise aligns with the company’s ambition to capitalize on favorable US government policies aimed at securing domestic supplies of critical and strategic minerals.

Leadership transitions also include Matthew Hayes stepping into the role of Executive Chairman, bringing extensive corporate and resource sector experience, while Andrew Dornan transitions to a corporate consultant role, continuing to provide strategic guidance.

Exploration and Development Outlook

James Bay Minerals intends to embark on an aggressive exploration and development program over the next 12 to 24 months. This includes infill drilling to upgrade confidence in the existing foreign NI 43-101 mineral resource estimate, which totals approximately 35 million ounces of silver at high grades. The company also plans to explore regional targets surrounding the defined mineralized footprint, with the goal of delivering a maiden JORC-compliant mineral resource estimate.

Additional metallurgical testwork and underground mine surveys are planned to refine operational parameters and support future feasibility studies. The project’s polymetallic potential, including gold, lead, and zinc, will be assessed through re-analysis of historic drill core, potentially enhancing the overall value proposition.

Positioning for North American Precious Metals Growth

The Shafter acquisition complements James Bay Minerals’ existing Independence Gold Project in Nevada, a tier-one mining jurisdiction known for its stable regulatory environment and rich mineral endowment. Together, these assets position the company to benefit from the strong macroeconomic outlook for precious metals in North America.

With a robust capital structure post-placement and a clear development pathway, Black Bear Minerals is poised to advance the Shafter Project towards production, contingent on exploration success and prevailing market conditions.