Consolidated Zinc Ltd. said Sept. 27 that it has renegotiated and exercised the option to increase its stake in the Plomosas zinc project in Mexico to 80%.
The company has acquired an additional 39% stake in Latin American Zinc SAPI de CV, which fully owns the project, from its partner Retec Guaru SA de CV.
Under the new terms, the company will pay A$500,000 and US$800,000 in two batches, down from A$750,000 in cash and A$1.7 million worth of shares previously.
Consolidated Zinc will also pay A$700,000 to the original vendors of the project, Arena Exploration Pty. Ltd., and issue to them 10% of the shares in Latin American Zinc under the terms of the original agreement executed in December 2014.
"We are on track to deliver our maiden JORC resource by the end of the year as we complete our initial drilling program over the next several months," Consolidated Zinc Managing Director Will Dix said in the statement.