VANCOUVER, BC, Oct. 24, 2024 /CNW/ – Argenta Silver Corp. (TSXV: AGAG) (formerly Butte Energy Inc.) (“Argenta” or the “Company“) is pleased to announce the successful acquisition of a 100% interest in the high-grade El Quevar silver project, located in Salta province, Argentina (the “El Quevar Acquisition“). The purchase was completed through the acquisition of all issued and outstanding shares of Silex Argentina S.A. for a total consideration of US$3,500,000.
Strategic Acquisition Positions Argenta as an Emerging Silver Leader
The El Quevar Acquisition marks a significant milestone for Argenta, positioning the Company as a rising force in silver’s future. Our mission is to advance world-class silver projects in mining-friendly regions, driving sustainable value for our shareholders while supporting the global energy transition.
Following the acquisition, Argenta’s common shares, which were previously halted, are expected to resume trading on the TSX Venture Exchange (the “Exchange“) under the new ticker symbol “AGAG” on Monday, October 28, 2024, subject to Exchange final approval.
About the El Quevar Project
The El Quevar project is distinguished by its high-grade pure silver mineral resource and substantial existing infrastructure. The Yaxtché deposit within the project hosts an indicated mineral resource of 45.3 million ounces of silver at a grade of 482 g/t Ag and an inferred resource of 4.1 million ounces at 417 g/t Ag1. Remarkably, the Yaxtché deposit covers less than 1% of El Quevar’s expansive 56,709-hectare property and remains open to the east and west, indicating significant exploration upside.
The project benefits from over 100,000 meters of historical drilling, excellent international road access, and more than 60 kilometers of internal roads. Additionally, El Quevar is equipped with a fully operational camp for 100 workers, existing permits, and access to power and transport networks. These assets provide significant cost savings and offer a clear path to rapid development.3
1 Source: NI 43-101 Technical Report on the Mineral Resource Estimate of the El Quevar Project, Salta Province, Argentina, Wood Canada Limited, 2024.
Management Appointments
We are also pleased to announce the appointment of Mr. Joaquin Marias as Vice President of Exploration and Development. An Argentine geologist with over 15 years of experience, Mr. Marias has been monitoring the El Quevar project for over a decade and was instrumental in identifying this opportunity for Argenta.
Mr. Marias brings extensive expertise in international precious metal exploration and development, having previously advised Frank Giustra’s Fiore Group and worked with Dolly Varden Silver. His successful experience in building a prospect generator company in Argentina provides him with a deep understanding of the social license required for successful operations across various provinces.
“El Quevar is one of Argentina’s most promising and underexplored silver districts,” commented Mr. Marias. “We see the potential for it to be part of a much larger mineral system. Our goal is to unlock its full potential, creating value for our shareholders while benefiting nearby communities.”
In addition to the appointment of Mr. Marias, the directors of the Company have appointed Aaron Triplett, CPA, CA as Chief Financial Officer and Michelle Borthwick as Corporate Secretary of the Company, effective immediately.
Mr. Triplett is a Chartered Professional Accountant (CPA, CA), and has accumulated over 15 years’ experience in the field of financial management and accounting, specializing in forecasting, compliance and risk management, and the development and monitoring of control systems. Mr. Triplett’s experience includes acting as Chief Financial Officer for various operating public companies listed on the TSX Venture Exchange and Canadian Securities Exchange. Mr. Triplett is currently Chief Financial Officer of Fiore Management & Advisory Corp. Prior to his work with public companies, Mr. Triplett was an audit and assurance manager for a mid-size public accounting firm.
Ms. Borthwick is a corporate finance and governance professional with over 25 years’ experience in senior corporate finance and governance roles with publicly listed issuers on Canadian and international stock exchanges. She is Senior Vice President, Corporate Finance of Fiore Management & Advisory Corp. and the founder and principal of Peakshore Consulting Inc. Prior to that she was Vice President, Corporate Affairs and Corporate Secretary of Endeavour Mining Corporation.
With the appointments of Mr. Triplett and Ms. Borthwick, the Company has accepted the resignation of Kia Russell as CFO and Corporate Secretary of the Company and would like to thank her for her past contributions.
Financing and Strategic Investment
In connection with the El Quevar Acquisition, Argenta completed a non-brokered private placement of 101,801,536 common shares at a price of CAD$0.15 per share, raising gross proceeds of CAD$15,270,230. We are pleased to highlight that Mr. Frank Giustra participated in the financing and now owns or controls approximately 13.62% of the Company on an undiluted basis (15.41% on a partially diluted basis). His involvement underscores a strong endorsement of Argenta’s strategic direction and the potential of the El Quevar project.
The Company also received unsecured, non-interest-bearing one year term loans totalling USD$500,000 and CAD$925,000 from certain arm’s-length parties. In consideration, Argenta issued 9,800,000 share purchase warrants exercisable at CAD$0.16 per share for a period of one year. A portion of the loans (CAD$817,500) was settled through the issuance of common shares of the Company on the same terms as the above mentioned non-brokered private placement, resulting in the issuance of an aggregate of 5,450,000 common shares of the Company, which shares are included in the 101,801,536 shares issued under the above mentioned non-brokered private placement. Additionally, 1,575,000 common shares were issued as finder’s and advisory fees. Concurrent with the acquisition, the Company changed its name from Butte Energy Inc. to Argenta Silver Corp., reflecting our renewed focus and commitment to silver exploration and development. The Company issued 75,000 common shares to a third-party holding rights to the name “Argenta Metals Corp.” under an asset purchase agreement among the Company and Argenta Metals Corp. dated October 4, 2024, pursuant to which the Company was able to reserve, and ultimately change its name to “Argenta Silver Corp.” with the British Columbia Corporate Registry. The new CUSIP for the Company’s common shares after the name change is 039944103 and the ISIN is CA0399441033.
Stock Option Grant and Investor Relations Agreement
Pursuant to the Company’s stock option plan, an aggregate of 10,500,000 stock options have been granted to directors, officers, employees, and consultants of the Company. The options are exercisable at a price of CAD$0.16 per share for a period of ten (10) years from the date of grant.
Additionally, the Company has entered into a marketing services agreement (the “Marketing Agreement“) with Gold Standard Media, LLC (“Gold Standard“), an internet marketing and advertising company. Gold Standard will provide marketing services to the Company for a period of two (2) years, including email marketing campaigns, landing pages, advertisements, and other related services to assist the Company in raising public awareness of the Company and enhance its online presence. Gold Standard is an arm’s length party to the Company.
Subject to the approval of the Exchange, the Company granted to Gold Standard a total of 1,500,000 incentive stock options (the “Gold Standard Options“) at a price to be determined in accordance with Exchange policies, for a period of 10 years from the date of grant. Once the exercise price for the Gold Standard Options has been determined, additional disclosure will be made by the Company. In accordance with the policies of the Exchange, the Gold Standard Options shall vest in four (4) equal instalments over a period of twelve (12) months from the date of grant.
Gold Standard is a limited liability company existing under the laws of the State of Texas with an office at 723 W, University Ave. #110-283 Georgetown Texas. Gold Standard uses third party service providers for the purpose of these marketing activities. The Marketing Agreement is subject to Exchange approval, and the Company confirms that that no compensation of any kind may be paid in connection with the Marketing Agreement until Exchange acceptance of the Marketing Agreement has been provided. To the best of the Company’s knowledge, certain affiliates and parties related to Gold Standard currently own 5,190,000 shares of the Company.
Additional Details from the Technical Report
The El Quevar project is located along the southern margin of the Andean Central Volcanic Zone, within the Quevar volcanic complex. Alteration at the structurally controlled Yaxtché deposit is typical of high-sulphidation epithermal deposits. The Yaxtché deposit remains open along strike and is within the greater project area where several additional prospects have been identified and remain to be fully tested.
The mineral resource estimate presented in Table 1 is based on an assumed underground mining method, silver price of $26/oz, is constrained with a mineralized envelope and is above an elevated cut-off of 250 g/t Ag. A portion of the mineralization is oxide material that could be amenable to open-pit mining and a separate process recovery option which would require a different resource model.
Table 1: Mineral Resource for the Yaxtché Deposit (Effective Date: September 30, 2024)
| Class | Type | Tonnes (Mt) | Ag Grade (g/t) | Contained Ag Metal (Moz) |
| Indicated | Sulphide | 2.63 | 487 | 41.1 |
| Oxide | 0.30 | 434 | 4.2 | |
| Total | 2.93 | 482 | 45.3 | |
| Inferred | Sulphide | 0.31 | 417 | 4.1 |
| Total | 0.31 | 417 | 4.1 |
- The independent Qualified Person who prepared the Mineral Resource estimate is Henry Kim. P.Geo., a Principal Resource Geologist with Wood.
- The effective date of the estimate is September 30, 2024. Mineral Resources were prepared in accordance with the 2019 CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines and reported in accordance with the 2014 CIM Definition Standards.
- Mineral Resources are constrained by an elevated cut-off of 250g/t Ag that considered a silver price of $26/oz, mining operating costs of $60/t at an assumed production of rate 365,000 t/a, process operating costs of $25/t, G&A costs of $30/t and a range of metallurgical recoveries between 81% and 93%.
- Reported Mineral Resources contain no allowances for hanging wall or footwall contact boundary loss and dilution. No mining recovery has been applied.
- Rounding as required by reporting guidelines may result in apparent differences between tonnes, grade and contained metal content.
Metallurgical test work has focused on sulphide mineralization from underground portions of the Yaxtché deposit which concluded that acceptable silver recoveries could be obtained by flotation concentration. For the purposes of mineral resource estimation, the assumed process method is selective rougher and cleaner flotation to produce a bulk silver concentrate. Based on test work results, the bulk silver concentrate would contain elevated levels of arsenic, antimony and bismuth impurities, which would result in concentrate treatment charges and incur penalty charges.
As part of his data verification Wood’s qualified person (QP) Henry Kim performed standard industry desk top activities including checking information with original source documents, comparing available topography surface on screen with drill hole collars, reviewing drill hole logs and comparing them with logged lithology, and engaging with Argenta advisors to answer specific questions. During his recent visit to the El Quevar project site QP Henry Kim performed standard validation checks including viewing drill holes and comparing them with cross-section maps, original drill logs and assay certificates and measured drill hole coordinates with a hand-held global positioning system device comparing them to the drill hole database.
Wood’s qualified person (QP) Alan Drake performed appropriate data verification by checking information with original source documents.
The Technical Report will be filed under the Company’s SEDAR+ profile at www.sedarplus.ca
About Argenta Silver Corp.
Argenta Silver Corp. is a focused silver exploration company committed to advancing projects that support the global energy transition. Our mission is to create sustainable, long-term value for shareholders by acquiring and developing high-potential silver assets in mining-friendly jurisdictions across Latin America. Led by an experienced management team with deep expertise in exploration, finance, and project development, Argenta takes a disciplined, strategic approach to growth. With a strong emphasis on responsible mining practices, we are well-positioned to meet the rising demand for silver—a critical metal in renewable energy and emerging technologies—while building a lasting and successful company.
Andrew Hamilton, P.Geo., a “qualified person” as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release.
On behalf of ARGENTA SILVER CORP.
“Geir Liland“
Chief Executive Officer
Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements and information herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to: the El Quevar project.
Although management of the Company believe that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These risk factors include, but are not limited to: exploration and development of the El Quevar project may not result in any commercially successful outcome for the Company; risks associated with the business of the Company; business and economic conditions in the mining industry generally; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting mining concessions); and other risk factors as detailed from time to time.
The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
SOURCE Argenta Silver Corp.