Why is this ASX All Ords silver share surging in Tuesday’s sinking market?

The All Ordinaries Index (ASX: XAO) is down 0.6% today, but don’t blame this ASX All Ords silver share.

The outperforming stock in question is Silver Mines Ltd (ASX: SVL).

Silver Mines shares closed yesterday trading for 15.5 cents. In morning trade on Tuesday, shares are changing hands for 16.3 cents apiece, up 4.8%.

This sees the Silver Mines share price up an impressive 63.9% over the last 12 months, racing ahead of the 3.2% one-year gains posted by the All Ords.

Here’s what’s grabbing investor interest again today.

ASX All Ords silver share jumps on land purchase

Silver Mines shares are charging higher after the miner announced that its wholly owned subsidiary, Bowdens Silver, has inked a binding agreement to acquire a parcel of freehold land. The agreement also includes associated water entitlements.

The newly acquired land is strategically located next to Silver Mines’ flagship Bowdens Silver Project, located in New South Wales.

The ASX All Ords silver share noted that, on completion of the latest acquisition, it will own some 3,345 hectares of freehold land. Taken together with its existing leases and land access agreements, this covers the entire Bowdens Silver Project area along with “a substantial surrounding buffer area”.

Silver Mines will pay $12.5 million in cash for the new freehold land parcel, with $1.76 million already having been paid to vendors. The miner will dip into its existing cash reserves to fund the purchase. It expects full settlement of most lots on 24 July.

What did Silver Mines management say?

Commenting on the strategic land acquisition helping lift the ASX All Ords silver share today, Silver Mines managing director Jo Battershill said, “Securing this strategic landholding demonstrates Silver Mines’ confidence in the future development of the Bowdens Silver Project, one of the world’s largest undeveloped silver projects.”

Battershill added:

The acquisition materially strengthens our land holding position around the project area, supporting our long-term development strategy as we progress the redetermination of the Development Consent and Mining Lease approvals.

Importantly, the acquisition delivers a number of strategic benefits to the project, including enhanced water security, biodiversity enhancement opportunities, and flexibility for future infrastructure.

The property also supports ongoing grazing and cropping activities, reflecting our commitment to responsible land stewardship and productive agricultural use.

Looking ahead, Battershill concluded:

The Bowdens Definitive Feasibility Study remains on track for completion around mid-year and we look forward to updating investors with the results in the coming months.

The post Why is this ASX All Ords silver share surging in Tuesday’s sinking market? appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about BHP shares this week?
• Guess which ASX All Ords share is rocketing 20% on big news
• Treasury Wine shares slide as another leadership change hits sentiment
• Forget term deposits! I’d buy these ASX dividend shares instead
• Buy, hold, sell: Catapult Sports, Tower, Guzman y Gomez shares

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.