Royal Silver Mines Inc., Spokane, Wash., has entered into an option with Placer Mining Corp., Kellogg, Idaho, for the silver-lead-zinc Bunker Hill mine in Shoshone country, Idaho. Upon completion of a due diligence period, Royal can exercise its option to enter ajoint venture by paying 1,000,000 dollars in cash and issuing 1,000,000 shares of its common stock to Placer Mining. Thereafter, Royal can increase its percentage ownership of the joint venture to a maximum of 80 percent by spending 40 million dollars on the development of the property over the next four years. Placer Mining acquired the Bunker Hill mine in 1991 and is currently producing about 50 tons per day of high grade lead-silver ore. Over the next 15 months, the joint venture intends to expand production to about 500 tons per day of lead-zinc-silver ores, as well as undertake a major underground diamond drilling program to better define, evaluate and expand the reserves.
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