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Silver Mines agrees to up spending in 80% earn-in near Barabolar silver project

Silver Mines Ltd. updated an agreement with Thomson Resources Ltd. to earn up to an 80% interest in license EL 7391 in New South Wales, Australia, by sole funding A$380,000 of expenditures over three years, rather than A$300,000 as previously agreed, of which A$80,000 has already been spent.

The company also has to complete at least 1,000 meters of drilling within the earn-in period and will manage all work programs during and after the period.

The license is about 15 kilometers south of the company's Barabolar silver project and 10 kilometers west of its Bowdens silver project.

The company said Dec. 14 that EL 7391 is undergoing renewal that, if granted, will make the license valid for six years.

Under the agreement, Thomson's 20% interest will be free-carried to the completion of a feasibility study, after which the companies will enter into a joint venture in which they will be required to fund expenditures in line with their respective interests.

Silver Mines plans to further define known soil geochemistry anomalism and conduct ground-based electromagnetic work prior to any drilling.