Prospero Silver Closes C$1.5-Million Strategic Investment With Fortuna Silver Mines
TSX VENTURE: PSL
VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 10, 2017) - Prospero Silver Corp (TSX VENTURE:PSL) (the "Company" or "Prospero") is pleased to announce that it has closed the C$1.5-million strategic investment from Fortuna Silver Mines Inc. ("Fortuna") which was announced on April 17, 2017.
Fortuna has purchased 5,357,142 units at C$0.28 per unit. Each unit comprises one common share in Prospero and one warrant entitling Fortuna to acquire one additional Prospero common share at C$0.35 for a period of 36 months. Prospero will allocate C$1.2 million to drill testing selected projects and C$300k will be allocated towards Prospero's generative efforts in Mexico. Fortuna will have the right to select one of the projects within 18 months from signing of the definitive agreement to joint venture with Prospero, potentially earning in to a 70% interest by spending US$8 million over 6 years and completing a Preliminary Economic Analysis on the selected property.
All shares and warrants issued in connection with the Offering will be subject to a four month hold period expiring September 11, 2017.
Tawn Albinson, the President of Prospero commented: "With today's closing, we now have the funding to drill test 3 key projects in our portfolio - Matorral, Petate, and Pachuca SE- and we'll be advancing the projects as promptly as possible. In anticipation of this deal closing, we have expedited permitting work on four projects. We will begin drilling at Matorral first, and we hope to award the drill contract in the next few weeks. I'd like to thank our new strategic partner, Fortuna Silver, for backing us and I'm looking forward to working with their exploration team in the coming 18 months."
Prospero's Project PortfolioSanta Maria del Oro Project, Durango State
Matorral and Lineament targets
The Matorral target, with over 7km of prospective structures, is one of two targets on the 9,066 hectare Santa Maria del Oro claims. A drill permit has now been received by Prospero for 20 drill pads in 3 different areas to test for down-dip precious metal mineralization. Prospero's sampling has returned silver values form trace up to 460g/t Ag at surface.
Surface access permits have been obtained and drill permitting is now in progress for the second target, the Magistral Lineament on the western side of the district, which is approximately 1.8km away from the historic Santa Maria del Oro mine. The Lineament structure was located by geophysics (see news release dated November 23, 2011).
Petate, Hidalgo State
The 6,868 hectare Petate property is the most advanced of Prospero's projects, with drill permits in progress for 30 drill sites and surface access secured from the land owners. High-level epithermal alteration is exposed over a 5x4 km area with highly anomalous gold and silver hosted in extensive outcrops and float of steep to strata-bound jasperoid. The significant size of the silicified zones indicates that Petate is a robust mineralized system with excellent potential to host a replacement type deposit at depth.
Pachuca Southeast, Hidalgo State
The Pachuca SE target consists of high-level epithermal-style alteration exposed in clay pits adjacent and on-strike from the historic Pachuca mining district. Prospero has received approvals from the Mexican archaeological agency (INAH) which paves the way for obtaining title on the 7,256 hectare claim.
The anomalous geochemistry and clay alteration at Pachuca SE target are very similar to that seen in the Vizcaina structure above the historic Pachuca Mine. The target has size potential, strong hydrothermal alteration and a number of geochemical anomalies have been identified associated with structures that could host a preserved Pachuca-type epithermal deposit at depth.
The 430 hectare Bermudez project is in Chihuahua, about 150km west of the City of Chihuahua. Additional mapping and sampling has been completed on the 2.5km strike length of the high-level low-sulfidation vein system. Based on assay results of 51 new samples, the best locations for 4 drill sites have been selected to test the potential for deeper mineralization.
Acquisition of New Projects
Prospero's geologists have been in the field for the last 3 months reviewing targets from the Company's data base. A number have been successfully identified for possible staking. The acquisition of the 100% owned Florida project was reported by news release dated December 7, 2016. One other project is in the advanced stage of staking and Prospero is currently in the process of completing the relevant paperwork.
Prospero wishes to announce that Martin Soto Moran will step down as the Vice President, Exploration effective immediately. Mr Moran will, however, remain with the Company as a senior geologist. The Company exploration efforts will continue to benefit from his extensive knowledge of Mexican mineral deposits and metallogeny.
Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this news release. Mr. Albinson is a Member of the American Institute of Professional Geologists and a Certified Professional Geologist (CPG) No. 11368.
About Fortuna Silver Mines Inc.
Fortuna is a growth-oriented, precious metals producer focused on mining opportunities in Latin America. The company's primary assets are the Caylloma silver mine in southern Peru, the San Jose silver-gold mine in Mexico and the Lindero gold project in Argentina.
About Prospero Silver Corp.
Prospero is a Mexico-focused project generator listed on the TSX.V under the symbol PSL.V. Prospero's aim is to discover world-class precious metal projects in the major mineral belts of Mexico. The Company applies a unique blend of practical exploration experience, cutting-edge mineral deposit science, and an extensive knowledge of Mexico´s geology to find new gold and silver systems. Our exploration programs are run by a small but highly-focused geological team based in Mexico.