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STRATEGY

PIT

OPTIMIZATION

PIT RESOURCE

EXPANSION

FURTHER

EXPLORATION

EXIT

STRATEGY

Nieves Exit Strategy

Open Pit Mine. There are very few open pit silver mines in the world. A world-class viable silver resource mineable by open pit able to produce 5M ounces of silver per year for >10 years with good economics, accessibility, infrastructure, and positive political climate is a desirable acquisition target for multiple silver miners in the Faja de Plata province.

Exit in Development. BBV’s business plan calls for finding, delineating, and assessing a plus-billion ounces silver resource, demonstrating the economic feasibility of mining the resource, and exiting through a sale, joint venture or exploration option (“farmout”) to a best-in-class mining group while Nieves is still in development.

Option 1: Direct Sale

The first option is a direct sale to a “best-in-class” precious metal miner for cash and/or stock. An example is the Western Silver Corporation exit executed by members of BBV’s senior management team:

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Western Silver invested $40 million in Nieves’ sister      property, Peñasquito, over a 4-year period;

Western Silver sold the property to Glamis Gold, Ltd.  in 2006 in exchange for Glamis  stock in a transaction valued at $1.2 billion; 

Glamis then sold the property to Goldcorp in a transaction that valued Western Silver’s shareholders stake in Glamis at $1.6 billion.

Goldcorp is being bought by Newmont for $10B.

Peñasquito accounts for $4.6B of that acquisition. 

Option 2: Joint Venture

The second option is a joint venture with a best-in-class noble metals miner group for cash and carry. An example is the Anglo Potash-BHP joint venture and Anglo Potash’s exit for cash and carry:

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Anglo Potash acquired 404,686 hectares of sub-surface mineral leases at a cost of $2,500,000 on a known potash deposit located in Saskatchewan, Canada, commissioned a third-party resource report, populated a data vault with requisite due diligence and then approached BHP with the opportunity;

BHP and Canadian Potash subsequently entered into a JV agreement whereby BHP acquired 10% of Anglo Potash for C$5,000,000 and a binding commitment to spend up to C$60 million to take the property to economic feasibility to earn an additional 65% of the joint venture;

Upon determining economic feasibility, BHO acquired Anglo Potash in a friendly takeover for US$281 million.

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