Results of the Special Meeting of Shareholders
Horn Silver Mines, Inc. conducted a Special Shareholders Meeting on January 10, 2025. At the meeting shareholders overwhelmingly approved the following:
Election of the directors
Approval of the actions taken by the Board of Director
Authorization to appoint an auditing firm
Ratify a proposal to sell 240 Mining Claims owned by the Company
Discontinue and wind down the corporation and distribute the proceeds to the shareholders
Transact such other business brought before the meeting.
Mining Claims
The primary asset of Horn Silver Mines, Inc. is a collection of 240 patented mining claims located in Beaver County, Utah. The county assessor lists the assessed value of these claims at approximately $1,000,000.
Although contiguous, the mining claims are divided into three groups: the Cactus Group, the Horn Silver Group, and the Marble Group.
The Cactus Group
The Cactus Mine was discovered in 1870. Mining was conducted between 1916 and 1956. The primary minerals produced were copper, silver, gold and lead, with historical production of $3,534,876 (nominal). Since this figure has not been adjusted for inflation, the adjusted value of the production would be considerably higher. Recent exploration has identified a number of prospective areas for future development.
The Cactus Group is subject to a Mining Lease and Option agreement with Volantis Resources. The rights and obligations under this agreement are held by Hawk Resources Limited https://hawkresources.com.au/ by virtue of its ownership of Volantis Resources. This agreement provides for an annual lease payment of $100,000 and contains an option to purchase the Cactus claims for between $4,000,000 and $6,000,000.
The Horn Silver Group
The Horn Silver Mine was discovered in 1875. For decades, it was one of the largest producers of silver in the world with some of the ore containing 70 to 200 ounces of silver per ton. In today’s dollars, production from the Horn Silver Mine exceeded several hundred million dollars. More information about the history of the mine can be found at https://utahrails.net/mining/frisco-mine.php.
The Horn Silver Group is subject to a Mining Lease and Option agreement between Horn Silver and Antler Resources LLC, a subsidiary of the Australian exploration company Opal Resources https://www.opalresources.com.au/. The purchase option in this agreement grants Antler the right to purchase the Horn Silver group of claims for $2,000,000. The option period under this agreement runs until June 30th, 2025, with an option to extend the option period for an additional six months. The purchase is dependent on completion of financing by Opal Resources.
The Marble Group
There are a smaller number of claims under lease to Great American Resources. Great American operates a quarry on these claims to produce limestone used for landscaping rock. This lease generates $12,000 per year in minimum royalty payments. There is no purchase option in this lease agreement.
More information about these deposits and their potential is available on Horn Silver’s website (https://www.hornsilvermines.com/properties).
Liquidation Considerations
Horn Silver Mines currently has approximately $750,000 in cash, or about $0.10 per share.
The only significant source of income for the Company is from lease payments made by the third-party exploration companies described above. These funds are insufficient to conduct meaningful exploration on the claims, or to seek property acquisitions.
Having received approval from the stockholders for the liquidation its assets and dissolution of the Company, the board of directors will begin by declaring an appropriate dividend to be distributed. This dividend will constitute a significant portion of Horn Silver’s cash, but will leave an allowance for operating costs, property taxes, shareholder communications, and other likely expenses.
Sale of the mining properties present several issues. The market for assets of this type is thin and the claims are encumbered by agreements with third parties. As a result, there is considerable uncertainty about when and if they can be converted to cash for distribution to the shareholders.
Other Possible Actions
Management is evaluating the possibility of a “reverse merger” that would amalgamate Horn Silver Mines, Inc. into an entity that has shares trading on a listed exchange.
Shareholder Registration
It is extremely important that shareholders update their mailing address with Pacific Stock Transfer. All communications, dividends, and other official interactions with shareholders will be based upon the official shareholder list maintained by Horn Silver’s transfer agent.
If shareholders have not provided Pacific Stock Transfer with current contact information, they should do so at their earliest convenience. Please contact:
Abigail Rodriguez - Transfer Agent
Pacific Stock Transfer Company
6725 Via Austi Pkwy, Suite 300
Las Vegas, Nevada 89119
arodriguez@pacificstocktransfer.com
Phone: (800) 785-7782
