Defiance Silver Completes Final Option Payment to Secure 100% Ownership of San Acacio
Rhea-AI Summary
Defiance Silver (OTCQB:DNCVF) completed the final option payment for the San Acacio mining concessions, securing 100% ownership of this core Zacatecas Silver Project asset in Mexico. The company paid US$2.3 million, added two surface land parcels (~24 hectares), and retains a buy-back right on a 2.5% NSR for US$2.5 million.
Defiance is advancing a 10,000-metre drill program ahead of an updated Mineral Resource Estimate and issued 33,839 common shares for services, settling $7,980 of accrued debt.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Positive
- Final US$2,300,000 payment secures 100% ownership of San Acacio
- Acquisition of two additional surface land parcels totaling ~24 hectares
- Right to repurchase 2.5% NSR for US$2,500,000
- 10,000-metre drill program underway to support updated Mineral Resource Estimate
- 33,839 shares issued to extinguish $7,980 in accrued service debt
Negative
- Vendor retains ongoing 2.5% net smelter returns royalty on San Acacio
- US$2,300,000 cash outlay required for final option payment
- Equity issuance of 33,839 shares introduces minor shareholder dilution
News Market Reaction – DNCVF
On the day this news was published, DNCVF gained 2.68%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - July 8, 2026) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") is pleased to announce that it has successfully completed the final option payment for the San Acacio mining concessions. This payment, executed through its wholly owned subsidiary, Minera Santa Remy S.A., grants the Company a
The San Acacio property covers the historic, silver-rich Veta Grande vein system, which has a multi-century mining history. The vein system trends northwest-southeast through the property and outcrops in the western portion, with numerous historic surface and underground workings along a 2 km of strike length. The land package covers approximately
The Company is currently in the midst of completing a 10,000-metre drill program at the Zacatecas Project designed to confirm the extension of the known mineralized structures both laterally and vertically as well as to validate the current geological model that will be used for the upcoming Mineral Resource Estimate.
Exploration potential remains at depth, with the Veta Grande system extending to at least 335 metres and other district veins extending beyond 1 km. Historic data includes 10,234.6 metres drilled in 44 holes and 233 trench and chip samples, while a further 10,000-plus metres in 32 holes were completed between 2014 and 2019, testing the system at depth beyond previous programs, with several holes intercepting mineralization below prior limits.
Earlier work evaluated an open-pit scenario, while current efforts assess underground mining potential, and base metals, not studied in detail before 2019, represent an additional consideration. Securing
TERMS OF SAN ACACIO PROPERTY AGREEMENT
Defiance has fulfilled its final acquisition obligations to the local vendor through a concluding payment of US
In a strategic expansion of the project footprint, the Company has also acquired two additional surface land parcels within the concession area, totaling approximately 24 hectares.
Final Payment: US
$2,300,000 .Net Smelter Returns (NSR): Per the original agreement, the vendor retains a
2.5% NSR on the property.Buy-back Provision: Defiance maintains the right to purchase the full
2.5% NSR for a total consideration of US$2,500,000 .
EXECUTIVE COMMENTARY
"Securing
- Chris Wright, Chairman & CEO
TENURE MAP OF THE ZACATECAS PROJECT
Map 1. Tenure Map of the Zacatecas Project: The figure delineates the Lucita and San Acacio areas, including their main vein systems, historic mine workings, drill collar positions, defined mineralized zones, and roads within and around the project.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2950/304342_2f138a9904cb88d1_001full.jpg
SHARES FOR SERVICES
The Company previously entered into a non-arm's length administrative services agreement dated May 1, 2023 (the "Agreement"), for services provided by an officer of the Company. As part of the consideration payable by the Company under the Agreement, the Company has agreed to issue that number of Common Shares equal to
The deemed value of the Service Shares to be issued for a particular month, is to be the closing price of the Company's shares on the last trading day of the month.
For services rendered under the Agreement between the period of July 1, 2025, to December 31, 2025, the Company issued 33,839 Common Shares at a weighted average price of
The Service Shares issued are subject to a four-month hold period, which will expire on a date that is four months and one day from the date of issuance.
No new insiders will be created, nor will any change of control occur, as a result of the issuance of the Service Shares.
As certain insiders are parties to the Agreement, it may be considered a "related party transaction" under Multilateral Instrument 61-101 Protection of Minority Security Holders In Special Transactions ("MI 61-101") and the TSXV. The Company is relying on the exemptions from the formal valuation and the minority shareholder approval requirements of MI 61-101 contained in section 5.5 (a) and Section 5.7 (1)(a) as the fair market value of the Common Shares being issued to insiders in connection with the Service Shares does not exceed
ABOUT DEFIANCE SILVER CORP.
Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company focused on advancing district-scale precious and base metal projects in Mexico. The Company's portfolio includes: The Zacatecas Project in the historic Zacatecas Silver District, the
On behalf of Defiance Silver Corp.
Chris Wright
Chairman of the Board
For more information, please contact:
Investor Relations at +1 (604) 343-4677 or email at info@defiancesilver.com
www.defiancesilver.com
Suite 2900-550 Burrard Street
Vancouver, BC V6C 0A3, Canada
Tel: +1 (604) 343-4677
Email: info@defiancesilver.com
Disclaimer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts may be "forward-looking information" for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate", "contemplate", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", "understand" and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things: the Company's expectations regarding the ability of the Mining Bureau of Mexico City to reinstate ownership of the concessions to the Company, cooperation with the Mining Bureau relating to such reinstatement and the potential for any successful solution resulting therefrom.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Defiance, are inherently subject to significant technical, political, business, economic and competitive uncertainties, and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information. Factors and assumptions that could cause actual results or events to differ materially from current expectations include, among other things: the inability of the Company to regain possession of its concessions; political risks associated with the Company's operations in Mexico; the failure of the Mining Bureau in Mexico City to take any coercive action to reinstate ownership of the concessions to the Company; and the inability of the Company and its subsidiaries to enforce their legal rights in certain circumstances. For additional risk factors, please see the Company's most recently filed Management Discussions & Analysis for its quarter ended February 29, 2024, available on SEDAR at www.sedarplus.ca.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance, or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Defiance, and prospective investors should not place undue reliance on forward looking information. Forward-looking information in this news release is made as at the date hereof. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.
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