The Thomson Resources Ltd (ASX: TMZ) share price is surging higher today following an update on the Silver Spur acquisition.
During mid-afternoon trade, the minerals mining company's shares are going for 13 cents a pop, up 8.3%.
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Thomson progresses on Silver Spur acquisition
Investors are pushing Thomson shares higher as the acquisition of the Silver Spur mine comes to a close.
In its announcement, Thomson advised it has entered into a binding terms sheet with Australian private company, Cubane Partners. The agreement will see Thomson acquire the Silver Spur mining lease, located within the Texas Silver project in Southern Queensland.
In early March, Thomson acquired the Texas Silver project from MRV Metals. Once the Silver Spur purchase is finalised, the company will control 100% of the Texas silver base metal district. Thomson stated that its latest acquisition is an important step of its Fold Belt Hub and Spoke strategy.
The consideration for the Silver Spur acquisition is $350,000 in cash through staged payments. The first $100,000 will be paid upon signing, with the remaining $250,000 on completion. In addition, 5 million ordinary Thomson shares will be issued at 12 cents each ($950,000) to Cubane shareholders.
Thomson revealed it is currently collating all historical exploration drilling and reports for the Texas Silver District. Plans for a new JORC sulphide resource along with prioritise exploration targets for drill testing is being put together.
Thomson executive chair, David Williams commented:
This is a key strategic acquisition for Thomson with the Silver Spur ML representing delivery of an additional silver resource and prospective exploration targets to be included within our Fold Belt Project Portfolio.
We now feel we have the "complete package", controlling over 518 sq. km of granted mining and exploration licences and new exploration licence applications covering, and surrounding the prospective Texas Silver District, a cornerstone asset in the Company's Fold Belt Hub and Spoke Strategy.
About the Thomson share price
It's been an interesting ride for Thomson shareholders. The company's shares have accelerated over 800% in the past 12 months, but are just hovering above 10% year-to-date. This is due to profit taking, particularly when the Thomson share price quickly soared to 25.5 cents in early February.
Based on valuation grounds, Thomson presides a market capitalisation of about $59 million, with 460 million shares outstanding.
