Quinto Resources Inc. said May 15 that it signed a letter of intent to buy private Canadian firm Conga Mining Inc. in an all-share deal.
Conga Mining holds the right to acquire the Combia gold project in Colombia, which comprises six wholly owned titles and 66% of a title over a 64-hectare area, as well as an operating mill.
Under the terms, Conga Mining shareholders will receive 40 million Quinto shares, to be issued in stages over a 10-month period from closing.
The transaction is subject to due diligence and the signing of a definitive agreement by Aug. 15. Quinto also agreed to pay Conga Mining US$100,000 in consideration of this exclusivity period should it fail to complete the deal.
Conga Mining can buy the Combia project for a total of US$2.7 million and is required to raise at least US$1 million to fund exploration work on the property. Quinto would be shouldering these requirements if it proceeds with the transaction.
Canadian gold explorer Quinto holds the option to fully acquire the Campo Largo gold project in Brazil.