The All Ordinaries Index (ASX: XAO) is edging higher today, but this ASX All Ords mining stock is taking a dive.
The under-pressure company in question is Silver Mines Ltd (ASX: SVL).
Shares in the Aussie silver miner closed yesterday trading for 12.5 cents. In morning trade on Thursday, shares are changing hands for 11.75 cents apiece, down 6.0%.
Here's what's grabbing ASX investor attention today.
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ASX All Ords mining stock taking a tumble
Investors are selling down the ASX All Ords mining stock after the company announced two new acquisitions, both located in the US state of California.
Silver Mines said it has entered into a binding agreement with Domestic Energy Metals to acquire a 100% interest in the Calico North Project in the San Bernardino County.
Silver Miners separately entered into a binding agreement with Lustrum Gold Corp to earn up to an 80% interest in the issued share capital of Lustrum Exploration, which holds the Kramer Hills Project, also in the San Bernardino County.
Management noted that both projects host mineralisation with historical production, where kilometres of mineralised structures remain untested both near the surface and at depth.
The miner said it will make a total upfront cash payment of US$1.1 million as well as 62.5 million Silver Mines' shares, "prior to milestone payments or expenditure commitments".
Early exploration is expected to kick off in the second half of 2025, with drilling planned to commence in 2026.
Silver Mines said its flagship Bowdens Silver Project, located in New South Wales, remains its key focus in 2025.
What did management say?
Commenting on the new acquisitions that have failed to boost the ASX All Ords mining stock today, Silver Mines managing director Jo Battershill said, "Silver Mines remains absolutely committed to advancing the flagship Bowdens Silver Project through permitting and into production."
Battershill added:
The company has been mindful of augmenting Silver Mines' exploration optionality and these transactions are the result of an extensive global silver project survey we have conducted in recent months.
The transactions have been carefully structured to minimise upfront cash outlay and are weighted towards a scrip component. These projects provide Silver Mines with a substantial foothold in a highly endowed region and fit perfectly with our preference for brownfields targets with high potential, in safe jurisdictions and with minimal balance sheet impact.
They offer substantial upside to shareholders through the discovery and definition of a potential development pipeline and offer geographical diversification.
With today's intraday slump factored in, shares in the ASX All Ords mining stock remain up 46.9% in 2025.
