* Bolivia says to take control of mining project
* South American Silver vows to seek recourse (Adds comments from company official, details)
LA PAZ, July 12 (Reuters) - The Bolivian government is willing to compensate South American Silver Corp for revoking its concession on the Malku Khota project, but it will be far less than the $16 million the company says it has invested, the country's vice president said on Thursday.
Bolivian President Evo Morales said this week that he signed a deal with protesters opposed to the project stipulating that the government take back all the concessions granted to South American Silver's local subsidiary.
The Canadian company's shares sank on Wednesday after the announcement, and Chief Executive Greg Johnson said the company would seek recourse using any legal and diplomatic means available.
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