Apex creates subsidiary Golden Temple

Denver — Apex Silver Mines (SIL-X) will bundle its various exploration properties into a new subsidiary, to be known as SilEx. The move will enable the company to focus its attention on developing the San Cristobal silver-zinc project in southern Bolivia.

SilEx will be responsible for raising its own funding from either debt or equity placings. Apex says it may consider taking the subsidiary public or spinning it off to shareholders. Other options include mergers, acquisitions, divestitures and joint ventures.

Since 1993, Apex has assembled a portfolio of 17 core properties, comprising a total of 1 million acres in six countries.

Three of these are in Bolivia, the chief project being a half-interest in the Rincon del Tigre platinum-palladium deposit in the country’s eastern region. The 50,400-acre property is one of the largest unexplored layered mafic intrusions in South America. Apex is also active in Mexico, where it has five properties. Chief among these is Platosa, in Durango state, where drilling recently outlined significant silver values.

Exploration is also under way at three properties in Peru and at one in Kyrgyzstan.

Back in Bolivia, Apex is nearing a production decision for the US$430-million San Cristobal project. Construction will begin once the company finds a power source and arranges financing. At full production, San Cristobal is expected to produce 27 million oz. silver and 570 million lbs. zinc per year.