Mantaro Silver Corp. (TSXV: MSLV) this morning reported that it has entered into a property option agreement to acquire up to an 80% interest in the Golden Hill property in Bolivia. The acquisition is reported to be for total consideration of US$3 million in cash and exploration expenditures, and 4 million company units.
“Golden Hill is an advanced stage gold-focused project with significant exploration upside,” said Mantaro Silver CEO Dr. Chris Wilson. “A drill-ready orogenic gold project in Bolivia is an excellent complement to our existing high-grade silver assets in Peru.”
Under the terms of the agreement, the transaction will be phased in three years with annual milestone options. The company will earn the initial 51% interest on the property within twelve months from the effective date by making scheduled payments totaling US$0.5 million and issuing in phases a total of 2.0 million company units to the optionor, as well as incurring US$0.25 million in exploration expenditures.
Each company unit consists of one Mantaro Silver share and one-half of a common share purchase warrant, with each whole warrant exercisable at a prevailing market price within two years from issuance.
Further, the company will earn the next 19% equity within the second year by paying US$0.5 million and issuing 1.5 company units to the optionor, as well as incurring US$0.25 million in exploration expenses. Then, the third option allows the company to acquire the last 10% interest on the property by the third year with an additional US$0.5 million payment, 0.5 million company units, and US$1.0 million exploration costs.
The Golden Hill property, located in so-called orogenic Bolivia shied, is fully permitted for mining and drilling. Prior, one of the main veins at its La Escarcha target had throughputs of 25 tonnes per day to a depth of 60 meters. The option agreement to acquire the property was made with Minera Golden Hill S.R.L. and Luis Fernando Kinn Cortez as the optionor.
The British Columbia mining company plans to channel sample all underground levels at drill-ready La Escarcha target to further fine-tune drill targeting.
Mantaro Silver last traded at $0.325 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.