08:37 AM EDT, 04/22/2024 (MT Newswires) -- AbraSilver Resource (ABRA.V) on Monday said Kinross Gold (K.TO) and Central Puerto will each invest $10 million to take a combined 8% stake in the company and its Diablillos silver-gold project in Argentina.

AbraSilver will issue the pair a total of 50-million shares priced at $0.40 each, a 3% premium to its April 19 closing price. AbraSilver plans to then consolidate its shares on a one-for-five basis.

The company is offering both investors anti-dilution and equity participation rights and will form a five-member technical committee, which will include two members nominated by AbraSilver, two by Kinross and one by Central Puerto, an Argentinian power company.

AbraSilver will also set up regional partnership with Kinross to jointly explore for silver, gold, and copper deposits in Argentina, granting Kinross the right "to acquire at least 50% of newly staked or acquired projects in Argentina beyond Diablillos".

"We are very excited to welcome both Kinross and Central Puerto as important strategic shareholders and partners," AbraSilver Chief Executive John Miniotis said in a release. "Through this transaction, AbraSilver is well funded for a dual strategy to aggressively advance the Diablillos project towards a production decision and to accelerate our exploration efforts. The company also gains access to the deep technical expertise in mineral exploration, mine development, and power generation."

Proceeds from the deal will be used by AbraSilver for the development of its Diablillos project and for working capital.

AbraSilver shares closed up $0.015 to $0.39 Friday on the TSX Venture Exchange.