Advanced Stage Silver and Gold Mining – Commonwealth Silver, Canada

New Picture (2)If you spot any environmental or safety issues in the main image above (click image to enlarge), please contact the EPA at epa.gov/tips – website: http://www.epa.gov/region9/strategicplan/

Image source: http://commonwealthsilver.ca/

Capital Structure Investor Information – Commonwealth Silver, Canada

Capital Structure – As per Commonwealth Silver, Canada

Capital Structure

As at March 31, 2014
Issued and Outstanding: 61,635,768
Stock Options: 6,130,000
Warrants: 3,318,551
Fully Diluted: 71,084,319

 

Major Shareholders

Shareholder Shares Ownership
Management & Directors
Hall Stewart – VP, Exploration & Director
7,566,000
12.3%
Michael Farrant – President & CEO & Director
7,358,000
11.9%
Robert Hatch – Director
183,400
0.3%
Julian Kemp – Director
100,000
0.2%
Total Management & Directors
15,207,400
24.7%
Eric Sprott
7,145,834
11.6%
Pinetree Resource Partnership
5,593,334
9.1%
Coeur Capital, Inc.
4,000,000
6.5%
Wexford Capital
3,000,000
4.9%
IA Clarington Tactical Income Fund
2,000,000
3.2%
Subtotal
36,946,568
60.0%
Other shareholders
24,689,200
40.0%
Total
61,635,768
100.0%

 

Stock Options By Grant

Grant Date Number Exercise Price Expiry Date Proceeds
March 1, 2011 1,850,000 $0.125 March 1, 2016 $231,250
August 1, 2011 240,000 $0.25 August 1, 2016 $60,000
September 1, 2011 800,000 $0.25 September 1, 2016 $200,000
September 15, 2011 1,200,000 $0.25 September 15, 2016 $300,000
March 15, 2012 260,000 $0.50 March 15, 2017 $130,000
September 1, 2012 1,180,000 $0.50 September 1, 2017 $590,000
February 28, 2014 600,000 $0.32 February 28, 2019 $192,000
Totals 6,130,000 $1,703,250

Warrants

Issue Date Number Exercise Price Expiry Date Proceeds
June 29, 2012 59,584 $0.50 18 months from going public date $29,792
June 29, 2012 425,600 $0.65 18 months from going public date $276,640
August 21, 2012 2,000,000 $0.65 18 months from going public date $1,300,000
September 2013 833,367 $0.50 18 months from going public date $416,684
Totals 3,318,551 $2,023,116

Management – Commonwealth Silver, Canada

Management – As per Commonwealth Silver, Canada

Michael Farrant, B.Comm., CPA, CA – Founder, President & CEO and Director

Mr. Farrant has over 17 years experience in gold mining, including President and CEO of Sierra Minerals Inc. (now Goldgroup Mining Inc.), a TSX-listed Mexican gold producer, CFO of junior gold producers, Vice President and Treasurer and Operations Controller with Kinross Gold Corporation (3 years) and Corporate Controller with Barrick Gold Corporation (6 years). He completed two business combinations in four years creating Goldgroup Mining Inc. and Castle Gold Corporation, subsequently acquired by Argonaut Gold Inc. He received a Bachelor of Commerce (Honours) from Queen’s University in 1992 and earned his CA in 1995 while with Coopers & Lybrand. He is currently a director and chair of the audit committee of Everton Resources Inc.

Hall Stewart, B.Sc., C.P.G., R.G. – Founder, Vice President, Exploration and Director

Mr. Stewart brings to the Company more than 25 years of international experience in specialized cartography, mineral exploration and resource development, and a track record that includes leading roles in the discovery of several gold-silver mines in Mexico. From 1996 to 2002, Mr. Stewart was Project Geologist for a number of exploration companies in the Ocampo district of Chihuahua State, including 4 years as Chief Geologist for Gammon Lake Resources Inc. (now AuRico Gold Inc.). In 2003, Mr. Stewart identified and helped acquire the Palmarejo project in Chihuahua, Mexico, subsequently working through the discovery and development phases. Palmarejo is the flagship silver and gold mine of Coeur Mining, Inc. Most recently, he served as Vice President, Exploration for Nayarit Gold Inc. which was then acquired by Capital Gold Corporation. Mr. Stewart received a Bachelor of Science from the University of Arizona in 1983 and is a Registered Geologist in the State of Arizona.

Eugene Lee, B.Comm., CPA, CA – Chief Financial Officer and Corporate Secretary

Mr. Lee has 9 years experience in mining, including a year as CFO of Premier Royalty Inc., a TSX listed royalty company he helped to take public prior to being acquired by Sandstorm Gold Ltd. Prior to that, Mr. Lee spent 6 years with Northgate Minerals Corporation as Corporate Controller, Vice President, Finance and Assistant Corporate Secretary including a period subsequent to its acquisition by Aurico Gold Inc. Mr. Lee was also Senior Accountant at Centerra Gold Inc. after spending 5 years at PricewaterhouseCoopers LLP (“PwC”) in both the Assurance and Corporate Advisory groups. He received a Bachelor of Commerce from University of Toronto in 1999 and earned his CA in 2002 while with PwC. He is currently a director and chair of the audit committee of Canoe Mining Ventures Inc.

Dennis Peterson, B.Comm., LL.B. – Canadian Legal Counsel

Mr. Peterson is an established lawyer in the area of small cap mining and natural resources law in Toronto.  In 1995, he formed Peterson Law Professional Corporation which focuses on securities and corporate finance law.  Mr. Peterson has extensive experience with public resource companies and practices primarily in the areas of corporate finance and mergers and acquisitions.  He received a Bachelor of Commerce (Honours) from Queen’s University in 1983 and an LL.B. from University of Toronto in 1986.

Source: http://commonwealthsilver.ca/corporate/management/

Corporate Profile Commonwealth Silver, Canada

Corporate Profile – As per Commonwealth Silver, Canada
Commonwealth Silver and Gold Mining Inc. (“Commonwealth Silver” or the “Company”) is a private Canadian mineral exploration and development company focused on acquiring gold and silver properties in Arizona and advancing them towards production, including the Company’s 98% controlled flagship asset, the past-producing Commonwealth silver and gold mine. The Company comprises an experienced management group with a strong background in all aspects of acquisition, exploration, development and financing of precious metals mining projects.

It is management’s belief that the Pearce mining district has the potential to host a significant economic silver and gold mineral resource. The Company controls the historic Commonwealth Mine and surrounding mining claims as well as the Blue Jeep, San Ignacio and Six Mile Hill exploration properties, totaling approximately 3,900 acres of mineral rights. Since April 2011, the Company has completed 7,502 meters of diamond drilling in 53 holes in addition to 155 holes of historic drilling totaling 15,672 meters.

In October 2011, the Company announced an initial mineral resource estimate on the Commonwealth Silver and Gold Project, calculated by SRK Consulting (U.S.), Inc. (“SRK”) in compliance with National Instrument 43-101.  In June 2013, the Company announced an updated mineral resource estimate on the Commonwealth Project calculated by Hard Rock Consulting, LLC (see “Resource Summary” under “Projects” tab).  For a copy of the full Technical Report on the Commonwealth Project titled, “NI 43-101 Technical Report on Resources – Commonwealth Silver and Gold Project, Cochise County, Arizona USA” dated September 5, 2013 with an effective date of June 10, 2013 see “Technical Reports” under the “Projects” tab.  The SRK report dated March 15, 2012, amended April 11, 2012 is also posted under the “Projects” tab.

On August 21, 2012 the Company received a $2,000,000 strategic investment from Coeur Mining Inc., announced on August 27, 2012.

Hard Rock Consulting, LLC has begun work on a Preliminary Economic Assessment (“PEA”) Technical Report in accordance with NI 43-101.  The Company hopes to receive the final PEA by December 31, 2013.  The current estimated mineral resource sits on private patented mining claims and the Company intends to develop the Commonwealth Project as an open pit, heap leach operation.

Source: http://commonwealthsilver.ca/corporate/profile/

Commonwealth Mine Project of Commonwealth Silver, Canada

Commonwealth Project – As per Commonwealth Silver, Canada

The Commonwealth Project is an advanced exploration development project located in the historic Pearce mining district in southeastern Arizona.  Historically, the deposits mined at the Commonwealth Mine were high grade silver and gold ores hosted in quartz veins and stockwork zones adjacent to the veins.  Production began in 1895, with commercial scale mining of the high grade ores ending in the late 1920’s.  Small scale mining by property lessors continued through 1942.  During this period of time, the Commonwealth Mine produced approximately 12 million ounces of silver and 138,000 ounces of gold, making it Arizona’s second largest historic primary silver producer.  The project was extensively explored and drilled by a number of companies from the 1970’s into the mid-1990’s who were seeking lower grade mineral resources amenable to open pit mining and heap leach extraction.  Work reached the pre-feasibility study level in 1996 before being halted due to low gold and silver prices.  This work included a technical report containing an historic non-National Instrument 43-101 (“NI 43-101”) compliant mineral resource estimate, economic analysis and pit design.  These studies included over 15,000 meters of reverse circulation and diamond drilling, underground channel sampling, extensive metallurgical studies, geotechnical studies and geologic mapping as well as financial models and proposed mining schedules.  No work was done on the project from 1997 to 2011 when Commonwealth Silver optioned the property and resumed exploration.

The mineral deposits on the Commonwealth Project are typical silver dominant, low sulfidation epithermal veins and stockworks.  The veins are best developed in a series of Cretaceous to Tertiary volcanic rocks of andesite to rhyolite composition correlative with the Mexican Lower Volcanic Series.  Cretaceous marine sediments of the Bisbee Group also host mineralization and are chemically favorable hosts.

The two most important veins are the Main Vein and the North Vein.  Between these two veins lies a wedge of volcanic rocks with well-developed quartz stockwork veining which is mineralized with silver and gold.  The vein system has been mapped over 1 km of strike length and continues to the east under alluvial cover.  Drilling has tested at least 800 meters of this strike length to a maximum depth of just over 200 meters.  There is significant potential to find extensions to the known vein system both east, west and down dip.  All the known veins in the district have a combined strike length of over 4.5 km.

Commonwealth Silver currently has an option to to acquire an 88% interest in eight (8) patented mining claims hosting the historic Commonwealth Mine and 100% of the mineral rights on ten (10) adjoining unpatented mining claims.  These claims are subject to a 2% net smelter return royalty, up to half of which can be bought back for a total of US$2.0 million, in two 0.5% increments of US$1.0 million each.  In June 2011, the Company completed the purchase of an additional 10% interest in the eight (8) patented mining claims bringing the Company’s interest in these claims to 98%.  There is no royalty on the additional 10%.

Source: http://commonwealthsilver.ca/projects/commonwealth/