Falcon Gold Corp. said Oct. 3 that it secured a right to acquire an initial 80% interest in Esperanza Resources SA gold-silver mineral concessions located in Argentina's La Rioja and San Luis provinces.
The property comprises 11 mineral concessions covering an aggregate area of 36,034 hectares that cover several high-grade gold occurrences as well as historical artisanal and small-scale mining sites.
Falcon will make escalating payments over six years to Esperanza totaling US$2.6 million in cash and issue a total of 1.5 million common shares.
The company is also required to spend US$5.6 million on exploring the property.
Following the 80% earn-in, Falcon will have a 24-month right to acquire the remaining 20% interest for a further payment of US$4 million and a 1% net smelter return royalty.
Meanwhile, Falcon terminated the letter of intent to acquire the interest in the Poposa gold-silver-copper property in Argentina.