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Mexican Gold adding 3 concessions to Las Minas property in Mexico

Mexican Gold Corp. said June 8 that its Mexican unit entered into a definitive deal to acquire the Pepe, Pepe Tres and San Jose concessions at its Las Minas gold-copper-silver property in Mexico.

The company has paid an initial US$433,333 plus value added tax and will pay six equal tranches of US$22,000 plus VAT, payable monthly starting Dec. 5, until May 7, 2018.

A final US$866,666 plus VAT will be payable by Dec. 5, 2018.

The owners will retain a 1.5% net smelter return royalty, one-third which the company can purchase for US$500,000 plus VAT.

The company's Roca Verde Exploracion de Mexico SA de CV subsidiary will have a right of first refusal on the royalty should the owners intend to transfer all or part of it.

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.