The parties will hold their interests in Cervantes indirectly through share ownership in a joint venture company
Kootenay Silver Inc. (TSXV: KTN) (the “Company” or “Kootenay”) is pleased to announce the Company has entered into a joint venture agreement with Aztec Minerals Corp. (TSXV: AZT) (“Aztec”) in respect of the Cervantes porphyry gold-copper project in Sonora, Mexico (“Cervantes”). As noted in the Aztec press release dated July 30, 2019, Aztec has completed its earn-in and exercised the option to acquire a 65% interest in Cervantes. Kootenay retains the remaining 35% interest. The parties will hold their interests in Cervantes indirectly through share ownership in a joint venture company, Aztec Minerals (Mexico) JV. Corp. The joint venture company indirectly owns 100% of Cervantes through its wholly owned subsidiary, Minera Azteca Dorado S.A. de CV.
Simon Dyakowski, CEO of Aztec, stated “We are pleased to have finalized the Cervantes joint venture agreement with Kootenay and look forward to recommencing exploration activities at the project in 2021. Aztec’s first drill program at Cervantes resulted in the discovery of a large, well mineralized gold oxide zone at the California zone, one of several prospective porphyry gold-copper targets on the property. Aztec and Kootenay will now form a joint venture Management Committee with Aztec as the Operator of the joint venture. The Committee will meet in the new year to review and approve the next phase of exploration to unfold the full potential of this exciting exploration asset.”
James McDonald President and CEO of Kootenay added ” We are excited about formulating the first exploration plan under the JV agreement and look forward to further testing of the California oxide gold zone and larger gold copper porphyry potential associated with it. The initial acquisition and identification of Cervantes is the result of the project generative work by Kootenay’s technical team. It is an example of the quality of early stage projects within the Company’s pipeline of projects that includes several properties in Mexico and Canada currently available for option.”
Source: Company Press Release