Aura Silver Resources Inc. (TSXV:AUU) announced that, along with Intrepid Mines Ltd. (TSX:IAU,ASX:IAU), it received a US$2 million net payout of prior concession fees owed to Pan American Silver Corp. (TSX:PAA,NASDAQ:PAAS). In total, Aura received about $1.3 million, which it will use in part to advance exploration at the East Taviche and Greyhound properties.
As quoted in the press release:
The payment was triggered by the completion of Pan Am’s sale of the West Taviche concession to Fortuna Silver Mines Inc. and is in accordance with the agreement between the Taviche JV and Pan Am which was completed in April 2012. The April 2012 agreement allowed Pan Am to retain a 100% ownership of West Taviche with the proviso that upon a sale of an interest greater than 70% in the property, US $2.0 million would be paid to the Taviche JV. In turn, the Taviche JV received a 100% ownership interest in the East Taviche concession where the Taviche JV has had the greatest amount of drilling success. Pan Am retains a 1.5% net smelter royalty in respect of East Taviche.