Minera Alamos is pleased to announce it has closed its acquisition of the La Fortuna Gold Project located in Durango Mexico from Argonaut Gold.
"This acquisition is consistent with the Company’s objective of adding late stage development opportunities to our growing mineral property profile," said Chris Frostad, Chief Executive Officer of Minera Alamos.
"In the coming months we expect to issue a technical report defining the project economics. If deemed appropriate, a construction decision is scheduled to be made by the end of the year."
The project hosts Measured plus Indicated Mineral Resources of 4.8 million tonnes grading 2.0 g/t gold and containing 308,100 gold ounces with additional silver credits, presently excluded from the resource calculations. The Company intends to release a new resource estimate in the coming months;
The identified gold-silver mineralization at the La Fortuna deposit remains open at depth and along strike. Several other mineralized areas have already been identified and demonstrated, via surface sampling, to be gold-bearing. These provide immediate drill targets for the definition of additional gold resources;
Minera Alamos has initiated the permitting process and expects to see permits issued in early 2017;
Pursuant to the terms of the agreement, the Company paid Argonaut USD $750,000 upon closing. An additional USD $250,000 will be paid in 9 months and USD $1,000,000 will be paid upon the announcement of a construction decision.
If such announcement does not occur within 24 months from the Closing Date, the Company will make a delayed payment of $200,000 every six months beginning on the last business day of the 24th month following the Closing Date to be applied against the final payment;
Argonaut is also entitled to a 2.5% NSR royalty to a maximum of USD $4,500,000.
Minera Alamos is a junior exploration and development company. Its growing high-grade Mexican portfolio currently includes the La Fortuna open pit gold project in Durango and the Los Verdes open pit copper-molybdenum project in Sonora, both currently in development.