TSX-V-listed Silverton Metals on Monday announced the acquisition of an underexplored, high-grade epithermal gold/silver deposit in Mexico. The company would buy the Margaritas property, comprising two concessions totalling 500 ha in Durango, from Zapata Exploration and 0924682, a private company controlled by Chris Osterman and Raul Diaz-Unzueta.
“We are very excited about the Margaritas acquisition as it contains a high-grade gold vein open in all directions with visible gold and the potential to be a bonanza-grade deposit,” said president and CEO John Theobald.
Both the environmental permit application and community agreement process have already started, which has given the company a head start on the exploration of the project.
Theobald said the company planned to have the project ready for drilling before the end of the year.
“Favourable topography facilitates drilling and or tunnelling and eventually would also facilitate underground mining. The simple mineralogy suggests that the gold could be easily extracted by gravity and leaching methods,” he said.
In order to acquire the issued and outstanding shares of Impulsora, the company has agreed to issue 750 0000 common shares and grant a net smelter return (NSR) royalty of 0.5%, which may be repurchased at $250 000.
Impulsora originally acquired its interest in the Margaritas property pursuant to the terms of transfer of mining concessions and an assignment of rights agreement.
Under the terms of the underlying agreement, the Margaritas property is subject to a 1% NSR, which may be repurchased for $320 000 (of which $120 000 has been paid).