J2 Metals secures option to acquire Mexico’s Sierra Plata project, targeting silver and strategic antimony with flexible payments and royalty terms.
J2 Metals has entered into a three-year option agreement that provides a pathway to acquire the Sierra Plata silver–antimony project from Impact Silver, marking a strategic move to expand its exploration footprint in Mexico. The Sierra Plata project comprises a substantial land position of approximately 2,200 hectares located within the Zacualpan mining district, close to Taxco in the state of Guerrero, Mexico. The property is situated in a historically productive region and directly borders mining concessions controlled by Grupo México and Impact Silver, underscoring the district’s long-standing mineral endowment and ongoing exploration interest.
Sierra Plata hosts a cluster of former silver-producing operations and is increasingly regarded as a highly prospective area for antimony, a metal that has gained strategic importance due to its use in flame retardants, batteries, semiconductors, and military applications. Within the project boundaries are five historic silver mines, notably El Salto and El Sabino, in addition to several smaller legacy workings that collectively demonstrate a record of mineralization. Importantly, multiple historic mines and artisanal workings are also located immediately outside the project area, with favorable lithological trends and structural features extending into the Sierra Plata claims, suggesting continuity of mineralized systems beyond previously exploited zones.
One of the project’s principal strengths lies in its dual exposure to silver and antimony potential, combined with access to established regional infrastructure. Through the agreement, J2 Metals will benefit from Impact Silver’s extensive technical knowledge of the district, as well as existing drilling data and logistical capabilities developed through years of operating experience in the region. This access is expected to help accelerate early-stage evaluation and reduce technical risk as exploration programs are designed and implemented.
Commenting on the transaction, J2 Metals’ chief executive officer Thomas Lamb said the agreement represents a compelling opportunity to advance a large and underexplored land package within a proven silver belt. He noted that Mexican mining regulations require certain concessions to be actively advanced through ongoing investment. As Sierra Plata falls outside Impact Silver’s immediate production priorities, the project presents an attractive opportunity for a focused exploration company to unlock its value.
Under the financial terms of the agreement, J2 Metals will issue Impact Silver subscription receipts with an aggregate deemed value of C$250,000 within three business days of receiving approval from the TSX Venture Exchange. These subscription receipts will automatically convert into common shares of J2 Metals on the date that falls four months after 19 December 2025, or on the effective date of the transaction, whichever is later.
In addition to the initial consideration, J2 Metals is required to complete qualifying exploration work on the Sierra Plata project on the first, second, and third anniversaries of the effective date. These commitments are accompanied by further issuances of common shares or cash payments, structured to ensure steady advancement of the property during the option period.
The agreement also provides J2 Metals with the flexibility to accelerate its acquisition timeline. The company may earn a 100% interest in the Sierra Plata project by completing the scheduled payments ahead of time and making an additional C$500,000 payment to Impact Silver. This payment can be made through a combination of cash and J2 Metals shares, with the final mix determined at Impact’s discretion.
Following completion of the acquisition, Impact Silver will retain a 1.5% net smelter returns royalty on all minerals produced from Sierra Plata. J2 Metals will, however, have the option to repurchase half of this royalty—reducing it to 0.75%—for C$1.5 million at any point before or after commercial production commences, providing further financial flexibility as the project advances.
