Day: November 26, 2018

On September 28, 2018, the Company entered into a definitive agreement to complete a business combination with Pershing Gold. The combination will add a shovel-ready, gold-silver development project in Nevada that adds significant precious metal growth to the Company’s production profile. Once completed, Relief Canyon is expected to produce 75,000 to 90,000 ounces of gold annually at low cash costs over an initial seven-year life and generate annual post-tax cash flow from $25 to $30 million. This transformative combination is expected to increase the Company’s precious metal production by over 5 times with precious metals representing greater than 60% of silver equivalent production.

The net proceeds of the financing will be used to pay for the drill program at the Pino de Plata project and general working capital

Fred Davidson, President & CEO of IMPACT stated, “Over the last two quarters we encountered the perfect storm of lower silver prices, lower grades at our mill, and fluctuating currencies (Mexican Peso & USD). To address this headwind of lower revenue and rising costs, the team has initiated a program designed to ultimately raise mining grades and reduce overall costs. Going forward, the Company will focus on ore grade selection including access to higher zinc zones even at the expense of tonnage milled if required. Work continues on the exploitation of the new San Ramon Deeps 2 zone just south of our current active mining areas, and on development of the Lipton vein at the Guadalupe Mine.”