Avino Negotiates Sale of Bralorne Gold Mines Ltd. To Talisker Resources Ltd.
Press Release
Avino Silver & Gold Mines Ltd. (ASM: TSX/NYSE American, GV6: FSE), (“Avino” or “the Company”) is pleased to announce that it has entered into a definitive agreement with Talisker Resources Ltd. (“Talisker”) for the sale of all of the issued and outstanding shares of Bralorne Gold Mines Ltd. (“Bralorne”) to Talisker (the “Transaction”) on the closing date of the Transaction (the “Closing Date”), for:
- A cash consideration of C$8.7 million;
- The issuance of common shares equal to 9.9% of the outstanding common shares of Talisker pro forma for the completion of the Transaction following any required equity financing;
- The issuance of warrants equal to 50% of the number of shares issued in the above, exercisable at $0.25 per share for a period of three years after the Closing Date;
- A cash payment of US$2.5 million, upon the commencement of commercial production at the Bralorne Mine and
- The transfer of all future restoration and reclamation obligation liabilities to Talisker.
David Wolfin, President and Chief Executive Officer of Avino commented, “We are pleased to announce this agreement with Talisker to transfer Avino’s ownership of Bralorne while retaining material economic exposure to the project through a significant equity investment in Talisker and the contingent cash payment payable upon the commencement of commercial production. We believe that Bralorne is best suited for a management team with deep exploration expertise and access to strategic investment capital from partners such as Osisko Gold Royalties (OR: TSX & NYSE) and we look forward to seeing them advance their exploration strategy at Bralorne as a supportive shareholder. This transaction repositions Avino as a pure-play silver producer in Mexico and greatly improves our balance sheet and liquidity. We believe that Avino is vastly undervalued relative to our silver peers based on our silver equivalent production profile, relatively low production costs and extensive resource base. Now with our improved financial position resulting from this transaction, we can focus our efforts on creating value in Mexico through exploration and other initiatives. Finally, I would like to thank all our staff and contractors at Bralorne for their dedication and professionalism over the years”.
The completion of the Transaction is subject to a number of conditions, and is expected to close during Q4 2019.
Cantor Fitzgerald Canada Corporation is acting as Avino’s Financial Advisor and Harper Grey LLP is acting as its legal advisor.
About Avino
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico and Canada employing close to 350 people. Avino produces from its wholly owned Avino Mine near Durango, Mexico. The Company’s gold and silver production remains unhedged. The Company’s mission and strategy is to create shareholder value through its focus on profitable organic growth at the historic Avino Property near Durango, Mexico, and the strategic acquisition of mineral exploration and mining properties. We are committed to managing all business activities in an environmentally responsible and cost-effective manner, while contributing to the well-being of the communities in which we operate.
On Behalf of the Board
“David Wolfin”
David Wolfin
President & CEO
IBF4
