VANCOUVER, BC, May 2, 2022
/PRNewswire/ - Avino Silver &
Gold Mines Ltd. (TSX: ASM) (NYSE American: ASM) (FSE: GV6)
("Avino" or "the Company"), announced that in line with its
strategic plans to become an intermediate producer in Mexico, the Company has granted Endurance Gold
Corporation (EDG – TSX.V; ENDGF – OTC Pink; 3EG – Berlin Open
Market, or "Endurance") the right to acquire an option to earn 100%
ownership of the former Minto Gold
Mine, Olympic and Kelvin gold prospects contained within a
parcel of crown grants and mineral claims (the "Olympic
Claims").
The Olympic Claims are owned by Avino and are located on the
north and south shores of BC Hydro's Carpenter Lake Reservoir in
the Bridge River Valley, east of the Royal Shear trend.
"As part of Avino's ongoing plans and recent strategic
acquisition of La Preciosa, our goal is to focus on expanding our
current mining complex, and advancing towards intermediate producer
status", said David Wolfin,
President and CEO of Avino. "To divest of this non-core asset which
has previously been inactive, allows us to transform quicker and
emerge stronger by focusing on our core operations in Mexico."
Under the terms of the letter agreement, Endurance can earn a
100% interest in the Olympic Claims if they pay Avino a total cash
consideration in the aggregate amount of $100,000, issue up to a total of 1,500,000 common
shares ('Shares') of Endurance and incur exploration expenditures
in the aggregate amount of $300,000;
all of which is to be incurred by December
31, 2024.
In the event that Endurance earns the 100% interest, the Olympic
Claims will be subject to a 2% net smelter return royalty ("NSR"),
of which 1% NSR can be purchased by the Endurance for $750,000 and the remaining balance of the NSR can
be purchased for $1,000,000.
As part of the final requirement to earn its interest, Endurance
agreed to grant to Avino 750,000 share purchase warrants
("Warrants") by December 31, 2024,
that offer Avino the option to purchase additional shares in the
Company for a period of three years from the date of issuance. The
exercise price of the Warrants will be set at a 25% premium to the
20-day VWAP share price at the issuance date. During the Option, if
Endurance is successful in defining a compliant mineral resource of
at least 500,000 gold-equivalent ounces on the Olympic Claims then
Endurance will be obliged to pay Avino a $1,000,000 discovery bonus.
The Option agreement is subject to the TSX Venture Exchange
acceptance, and any Shares or Warrants to be issued will be subject
to a four-month hold period on issuance as per the policies of the
TSX Venture Exchange.
About Avino
Avino is primarily a silver producer from its wholly owned Avino
Mine near Durango, Mexico. The
Company's silver, gold and copper production remains unhedged. The
Company's mission and strategy is to create shareholder value
through its focus on profitable organic growth at the historic
Avino Property and the strategic acquisition of mineral exploration
and mining properties. We are committed to managing all business
activities in a safe, environmentally responsible, and
cost-effective manner, while contributing to the well-being of the
communities in which we operate. We encourage you to connect with
us on Twitter at @Avino_ASM and
on LinkedIn at Avino
Silver & Gold Mines. To view the Avino Mine VRIFY tour,
please click here.
ON BEHALF OF THE BOARD
"David Wolfin"
David
Wolfin
President & Chief Executive
Officer
This news release contains "forward-looking information" and
"forward-looking statements" (together, the "forward looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
These forward-looking statements are made as of the date of this
news release. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
future circumstances, outcomes or results anticipated in or implied
by such forward-looking statements will occur or that plans,
intentions or expectations upon which the forward-looking
statements are based will occur. While we have based these
forward-looking statements on our expectations about future events
as at the date that such statements were prepared, the statements
are not a guarantee that such future events will occur and are
subject to risks, uncertainties, assumptions and other factors
which could cause events or outcomes to differ materially from
those expressed or implied by such forward-looking statements. No
assurance can be given that the Company's Avino Property nor the La
Preciosa Property have the amount of the mineral resources
indicated in their reports or that such mineral resources may be
economically extracted. Such factors and assumptions include, among
others, the effects of general economic conditions, the price of
gold, silver and copper, changing foreign exchange rates and
actions by government authorities, uncertainties associated with
legal proceedings and negotiations and misjudgments in the course
of preparing forward-looking information. In addition, there are
known and unknown risk factors which could cause our actual
results, performance or achievements to differ materially from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Known risk factors include risks
associated with project development; the need for additional
financing; operational risks associated with mining and mineral
processing; the COVID-19 pandemic; volatility in the global
financial markets; fluctuations in metal prices; title matters;
uncertainties and risks related to carrying on business in foreign
countries; environmental liability claims and insurance; reliance
on key personnel; the potential for conflicts of interest among
certain of our officers, directors or promoters with certain other
projects; the absence of dividends; currency fluctuations;
competition; dilution; the volatility of the our common share price
and volume; tax consequences to U.S. investors; and other risks and
uncertainties. Although we have attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events
or results not to be as anticipated, estimated or intended. There
can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. We are under no obligation to update or alter any
forward-looking statements except as required under applicable
securities laws. For more detailed information regarding the
Company including its risk factors, investors are directed to the
Company's Annual Report on Form 20-F and other periodic reports
that its files with the U.S. Securities and Exchange
Commission.
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SOURCE Avino Silver & Gold
Mines Ltd.
