Aftermath Silver Ltd. (TSXV: AAG, OTCQX: AAGFF) has taken a significant step forward in its Berenguela silver-copper-manganese project located in southern Peru. The company recently made a property payment of US$2.9 million to EMX Royalty Corp, five months ahead of the scheduled due date in May 2025. This early payment is part of a broader agreement that allows Aftermath to acquire a 100% interest in the Berenguela project, which is situated in the Department of Puno.
The Berenguela project has garnered attention for its potential as an open-pittable resource, with valuable minerals critical for various industrial applications, particularly in clean energy technologies. Aftermath Silver’s option to acquire the project stems from binding agreements with SSR Mining Inc. and EMX Royalty Corporation, following EMX’s acquisition of certain interests from SSR.
Ralph Rushton, President and CEO of Aftermath Silver, expressed gratitude towards EMX for their flexibility in adjusting the terms of the agreement. He stated, “With the latest payment made, our focus now is on completion of the Berenguela PEA.” This indicates that the company is moving towards finalizing a Preliminary Economic Assessment (PEA) that will evaluate the project’s economic viability.
The payment structure outlined in the acquisition agreement originally totaled US$13 million, but following a recent adjustment, Aftermath’s remaining obligations to EMX now include a cash payment of US$3 million due on May 15, 2025, which has already been paid, and an additional cash payment of US$3.25 million due in November 2026. Furthermore, there is a sliding-scale Net Smelter Return (NSR) royalty on all mineral production from Berenguela, starting at 1.0% when silver prices are up to US$25 per ounce and increasing to 1.25% when silver prices exceed that threshold, provided copper prices are also above US$2 per pound.
The Berenguela project is positioned favorably due to its proximity to essential infrastructure, including roads, rail lines, and power sources. This accessibility enhances its potential for development and operational efficiency.
Recent metallurgical test work conducted at Berenguela has yielded promising results, indicating high recoveries of silver and minimal interference from manganese during processing. The tests have shown recovery rates of 95% for silver and 89% for copper from composite samples tested. Such results are crucial as they suggest that the extraction process can be both efficient and cost-effective.
Looking ahead, Aftermath Silver plans to revise its mineral resource estimate based on new drilling results and continue advancing towards completing the PEA. The company aims to demonstrate that Berenguela can produce not only silver but also copper metal and potentially high-purity manganese products.
Aftermath Silver Ltd., a Canadian junior exploration company focused on silver projects in stable jurisdictions. The Berenguela project remains a key focus area as it progresses through various stages of advancement.
