Andean Silver (ASX: ASL) has again put its belief in the potential of the Cerro Bayo silver-gold project in Chile on full display with a decision to make the final deferred payment in advance of its mid-October due date.
The payment of $750,000 paid in cash to Equus Mining (ASX: EQE) follows the company’s recent $25 million capital raising and results in a $250,000 saving for Andean.
Andean completed its 100% acquisition of Cerro Bayo in February 2024 and has since achieved significant drilling success aimed at rapidly growing the project’s existing inferred resource.
Chief executive officer Tim Laneyrie said the decision to make the early payment reflects Andean’s confidence in achieving upcoming resource growth milestones.
“Our recent highly successful capital raising has given us the financial flexibility to make this payment while ensuring we are well-funded for what will be a huge 12 months ahead for Andean as we continue to drill aggressively to grow our resource,” he said.
The Cerro Bayo project currently hosts a total inferred and indicated mineral resource estimate of 8.2 million tonnes at 342 grams per tonne silver equivalent.
Andean plans to boost that with 40,000 metres of drilling planned for FY25, with up to four drill rigs simultaneously operating on site.
The final payment comes just one day after Andean named experienced mining executive David Southam as non-executive chair.
Mr Southam has been a non-executive director of Andean since April of this year and will succeed Ray Shorrocks, who will remain with Andean as a non-executive director.
“As the company continues to grow, the board and management of Andean will continue to evolve and this is a logical first step along that journey,” Mr Laneyrie said.
Mr Southam brings significant experience in leadership roles in the mining sector.
He is currently a non-executive director of ASX-200 gold producer Ramelius Resources (ASX: RMS) and executive chair of Cygnus Metals (ASX: CY5).
“I look forward to working with David as we ramp up the drilling campaign and deliver the next resource upgrade early in 2025,” Mr Laneyrie added.
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