THUNDER BAY, ONTARIO--(Marketwired - June 8, 2017) - MEXICAN GOLD CORP. (the "Company" or "Mexican Gold") (TSX VENTURE:MEX) is pleased to announce that its wholly-owned subsidiary, Roca Verde Exploracion de Mexico, S.A. de C.V. ("Roca Verde"), has entered into a definitive purchase and sale agreement (the "Purchase Agreement") to acquire a 100% interest in the Pepe, Pepe Tres and San Jose concessions (the "Concessions") at its Las Minas property from the current owners (the "Owners"). The Concessions form the core of the Las Minas property and encompass six highly mineralized zones, including the El Dorado/Juan Bran and Santa Cruz zones. An initial mineral resource estimate is currently underway for these two zones and is scheduled for completion in July, 2017.
Pursuant to the terms of the Purchase Agreement, Roca Verde has agreed to acquire the Concessions in consideration for the following payments to the Owners:
- an initial payment of US$433,333 plus Value Added Tax, payable upon execution of the Purchase Agreement (the "Initial Payment");
- six equal payments of US$22,000 plus Value Added Tax, payable monthly commencing on December 5, 2017 with the final payment due on May 7, 2018 (the "Monthly Payments"); and
- a final payment of US$866,666 plus Value Added Tax, payable on or before December 5, 2018 (the "Final Payment" and, together with the Initial Payment and the Monthly Payments, the "Consideration").
The Initial Payment has been paid in full. If the Final Payment is made prior to the date on which any of the Monthly Payments are due, any Monthly Payment that would have been due after the date upon which the Final Payment is made shall no longer be payable. Upon payment of the Consideration, ownership and full title to the Concessions shall be automatically transferred to Roca Verde.
Pursuant to the terms of the Purchase Agreement, upon the transfer of the Concessions, the Owners shall retain a 1.5% NSR royalty (the "Royalty"), of which one third may be purchased by Roca Verde for US$500,000 plus Value Added Tax. Roca Verde has a right of first refusal on the Royalty in the event that the Owners intend to transfer all or part of the Royalty.
Brian Robertson, President and CEO stated, "This agreement, which secures Mexican Gold's right to acquire ownership of these key core concessions, marks a major milestone for Mexican Gold. I wish to thank the property owners for their kind co-operation and unwavering support for Mexican Gold. We now look forward to the initial mineral resource estimate for the El Dorado/Juan Bran and Santa Cruz zones and the continuing advancement and development of this highly mineralized property."
About Las Minas
The Las Minas Project hosts near-surface gold, silver and copper skarn mineralization and high-grade gold-silver epithermal vein deposits. The project is comprised of six mineral concessions covering approximately 1,616 hectares (3,995 acres), with numerous small scale, past-producing mines and a number of untested targets.
The district is host to one of the largest under explored gold-silver copper skarn systems known in Mexico, and has a production history that extends back to the Aztec era. The Las Minas granodiorite intrusive measures approximately 10 kilometres in diameter and underlies the Las Minas concessions. The mineralization controls and association with magnetite appear to be similar to the Guerrero Gold belt, which is the site of the Los Filos and Morelos gold deposits.
About Mexican Gold Corp.
Mexican Gold Corp. is a Canadian based mineral exploration company committed to building long-term value through ongoing discoveries and strategic acquisitions of prospective precious metals deposits in Mexico. Mexican Gold is exploring the Las Minas Project, which is located in the core of the Las Minas district in the Veracruz State, Mexico. The district is host to one of the largest under-explored skarn systems known in Mexico and has a strong production history that dates back to the Aztec era.
