The claim is located adjacent to the company’s Cerro Las Minitas mineral property in Durango
Canada-based Southern Silver Exploration has agreed to acquire the El Sol mineral claim from Monarca Minerals in Mexico.
The company stated that the claim is located adjacent to its Cerro Las Minitas mineral property in Durango, which it operates jointly with its partner Electrum Global Holdings.
According to Southern Silver, the El Sol acquisition is a completely separate investment made solely by the company and that the claim will not become part of the Cerro Las Minitas joint venture.
Terms of the agreement between Southern Silver and Monarca Minerals
Under the terms of the agreement, Southern Silver will pay $300,000 for the mineral claim in three equal instalments. The first payment is due on execution of a definitive agreement, the second after 12 months and the final payment at the end of 18 months.
The company also needs to pay a 2% net smelter royalty which Southern Silver has the right to acquire at any time for $1m.
The El Sol concession is a single 63ha claim that covers the northwest projection of the Blind – El Sol deposits and potentially at least one additional mineralised structure.
It is strategically located on the northwestern boundary of the Bocona block of claims and is adjacent to the Area of the Cerro which hosts the four mineral deposits currently identified within the Cerro Las Minitas claim package.
The company also provided update on recent warrant and stock option exercises.
In a statement, Southern Silver stated: “Proceeds from such warrant and option exercises of $1,255,484, together with gross proceeds from our 2019 Unit private placement of $4,206,500, are being used for working capital and to cover the Company’s share of the costs associated with current and future exploration and development programs at Cerro Las Minitas and El Sol.”
Southern Silver Exploration is a precious metal exploration and development company which focuses on the discovery of world-class mineral deposits in north-central Mexico and the southern USA.