Prospero Silver Announces Option Agreement to Acquire Buenavista Claims, Mexico
TSX VENTURE: PSL
VANCOUVER, British Columbia, Aug. 01, 2017 (GLOBE NEWSWIRE) -- Prospero Silver Corp. (TSXV:PSL) (“Prospero” or the “Company”) announces that it has, together with its Mexican subsidiary Mineral Fumarola, S. A. de C. V., entered into an option to own agreement (the “Option Agreement”) with Exploraciones del Altiplano, S.A. de C.V. (“Altiplano”) to earn a 100% right, title and interest in and to Altiplano’s Buenavista claims located in Durango, Mexico (the “Property”), subject to the reservation by Altiplano of a 2% net smelter return royalty. The Option Agreement is subject to approval of the TSX Venture Exchange (the “TSXV”).
To exercise the option and earn its 100% interest in the Property, Prospero must issue a total of 750,000 common shares to Altiplano over 48 months as follows: 75,000 shares within 5 business days of TSXV approval of the Option Agreement; 150,000 shares on each of August 1, 2018 and August 1, 2019; 175,000 shares on August 1, 2020; and, 200,000 shares on August 1, 2021. In addition, Prospero must pay taxes due on the Property beginning the second semester of 2017 (approximately US$7,750).
Tawn Albinson, President, CEO and director of the Company, owns or controls, indirectly through his consulting company Microtermometria y Asesoria Geologica Minera, SA de CV, over 20% of the issued shares of Altiplano. Pursuant to TSXV Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the Option Agreement constitutes a “related party transaction” as a result of Mr. Albinson’s relationship with Altiplano. The Company relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction did not exceed 25% of the Company’s market capitalization.
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.