Unico Silver has secured permanent ownership of over 10,000 hectares critical to its Joaquin silver-gold project, replacing a limited mining easement and reducing development risk ahead of its Pre-Feasibility Study.
- Acquisition of 10,172 hectares of freehold land at La Mata estancia
- Replaces 2017 surface rights agreement with permanent ownership
- Secures land for key infrastructure including processing plant and tailings facility
- US$12 million total consideration with US$3.5 million initial cash payment
- Supports long-term development and exploration upside at Joaquin
Permanent Land Ownership De-Risks Joaquin Development
Unico Silver Limited (ASX:USL) has taken a decisive step to solidify its development footing at the Joaquin silver-gold project by acquiring 100% ownership of the La Mata estancia, a strategic landholding spanning approximately 10,172 hectares. This transaction converts what was previously a limited 1,250-hectare mining easement under a 2017 agreement with Pan American Silver into permanent freehold title, substantially enhancing Unico's operational flexibility and control over the project footprint.
Managing Director Todd Williams highlighted the significance of the acquisition, noting it as a major de-risking milestone. While recent drilling continues to expand the resource base, securing the land that hosts the La Morocha and La Negra Mineral Resources, as well as the preferred sites for the processing plant, Tailings Storage Facility, and haul roads, is crucial to advancing the Pre-Feasibility Study (PFS) and future infrastructure development.
Structured Consideration Preserves Capital
The total purchase price is US$12 million, structured to balance capital preservation with strategic urgency. An initial cash payment of US$3.5 million was funded from existing cash reserves of A$62.7 million as of the March 2026 quarter, accompanied by US$2.5 million in Unico shares and three deferred cash payments of US$2 million each over the next three years. This staged approach allows Unico to secure exclusive possession of the property promptly while managing its financial exposure.
During the acquisition period, the existing surface rights agreements have been extended by ten years to 2044, ensuring uninterrupted operational access. Legal title transfer will complete upon full payment and cadastral subdivision registration, at which point the usufruct and surface rights will terminate under Argentine law, consolidating ownership and operating rights.
Joaquin and Cerro Leon Resource Base Underpins Growth
The La Mata acquisition underpins Unico's broader Santa Cruz portfolio, which includes the Joaquin and Cerro Leon projects. Joaquin's maiden JORC Mineral Resource Estimate, updated in March 2026 to 167 million ounces silver equivalent, confirms a large, shallow, oxide-dominant system with strong potential for open-pit mining. Ongoing drilling at La Morocha, La Negra, and Breccia Puntudo continues to extend mineralisation, supporting further resource growth ahead of the PFS.
Cerro Leon complements Joaquin with a JORC-compliant resource of 162 million ounces silver equivalent, providing additional scale and development optionality. Together, these projects position Unico as a pure-play silver developer with a combined resource base of approximately 330 million ounces silver equivalent.
A Strategic Move Ahead of Development
This acquisition replaces the previous mining and access agreement, which was due to expire in 2034, with permanent freehold ownership, removing a significant operational constraint. The expanded landholding secures critical infrastructure sites and exploration upside, allowing Unico to pursue a standalone development strategy with greater certainty.
With the PFS advancing and resource growth still underway, Unico’s control over the La Mata estancia reduces project execution risk and lays a firmer foundation for future development decisions. The company’s strong cash position and staged payment terms provide financial flexibility as it progresses towards project delivery.
Bottom Line?
Unico’s acquisition of permanent land rights at Joaquin marks a pivotal de-risking event, setting the stage for more definitive project development milestones and resource expansion.
Questions in the middle?
- How will the timing of the full legal title transfer impact the Pre-Feasibility Study schedule?
- What exploration targets within the newly acquired land might drive the next resource upgrade?
- Will Unico pursue additional infrastructure partnerships or financing as development plans crystallise?