Silver Elephant Mining Corp. (“Silver Elephant” or “the Company”) (TSX:ELEF) (OTCQX:SILEF) (Frankfurt:1P2N) announces that it has suspended the Sunawayo property installment payments pending verification of the status of Sunawayo title and environmental permit (held by the Vendors as defined below) with authorities. The Company acquired its interest to the Sunawayo Project pursuant to a sales and purchase agreement executed with certain Vendors dated August 25, 2020 (the “SPA”).
The Company has notified the Vendors of their breach of certain disclosure representations in the SPA. To date, the Company has made one payment totaling US$300,000 and has no further contractual obligations unless it wishes to pursue the SPA further to acquire Sunawayo.
Sunawayo is an early-stage exploration project and represents a small, non-material part of the Company’s overall strategy. By excluding future Sunawayo payments, Silver Elephant has total mineral property cash payments of approximately US$250,000 for the remainder of 2021 and US$400,000 for 2022.
Further to the news releases dated May 14, 2021 and May 20, 2021, the Company plans to focus on its Pulacayo project’s resource expansion and its environmental permitting in Potosi department, Bolivia. The Company found a large 1.4km geophysical anomaly at Pulacayo which it intends to drill in the near future. Pulacayo hosts 107 million oz of silver in the indicated category, according to a Mercator Geological Services technical report dated October 13, 2020 available on sedar.com.
In parallel, the Company will work on proposed dual spinouts of its wholly owned subsidiaries (Flying Nickel Mining Corp. and Nevada Vanadium Mining Corp.) to return to a silver exploration company
About Silver Elephant
Silver Elephant Mining Corp. is a premier silver mining and exploration company.
www.ferroalloynet.com
