The 1,976-acre La Candelaria property is located 25 miles southeast of Batopilas in the Mexican state of Chihuahua.
The company said it is able to advance toward its goal of production in the Sierra Madre Occidental (SMO) gold and silver belt by forming a strategic alliance with Metales, as well as the Bustillos-Gonzalez family.
The Bustillos-Gonzalez family has operated multiple wildcat mines over generations throughout the SMO belt.
Lone Star has agreed to a $240,000 cash payment, 250,000 company shares, and a work commitment of $450,000 over the first three years.
The agreement also includes a net smelter return of 2%, of which 1% can be purchased for $1m at any time.
