Precious metals mining company Fortuna Silver Mines and its subsidiary Compania Minera Cuzcatlan (CMC) have entered into an option agreement to earn up to an 80% interest in the Taviche silver project, in Oaxaca, Mexico, from TSX-listed Gold79 Mines.
Under the terms of the agreement, CMC will act as operator of the project and can earn an initial 60% interest in the project by making cash payments of $450 000 to a subsidiary of Gold79 Mines, as well as incurring $4-million in work expenditures over a three-year period.
Gold79 retains a 20% free-carried interest in the Taviche project
"We are pleased that the Taviche silver project has been placed in strong hands with Fortuna as operator.
"Significant exploration programmes are contemplated and, if successful, we could see our 20% interest purchased with funding from Fortuna," comments Gold79 Mines president, CEO and chairperson Gary Thompson.