GMV Minerals (TSXV: GMV) has been granted an exclusive option to acquire the Mexican Hat mining claims for its project located in Cochise County, Arizona. Currently held via a 100% owned lease via a subsidiary, the company has now been granted an exclusive option to acquire the claims themselves.
The company has been the owner of the lease since 2014, when the lease was granted to a subsidiary of the company by Norman A. Pearson and Manuel R. Hernandez. Last year, upon the passing of Hernandez, the ownership of the claims were transferred to the Hernandez Family Trust, with GMV still owning the lease to these claims.
Now, under an option agreement dated December 14, 2020, the company has been granted an exclusive option for an initial five year period to purchase the unpatented claims that are subject to the lease, which also has a three year extension period. In connection with the option, the company is required to make quarterly option payments to that of the Hernandez Trust.
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While the option price for the purchase of the property was not disclosed, it was noted that a net smelter royalty of 3% will be subjected to the claims upon exercise of the option, similar to the current lease terms. 1.5% of this can be acquired by the company for US$1.5 million.
GMV Minerals last traded at $0.245 on the CSE.
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