Vangold Resources Ltd. is looking to acquire the El Pinguico-Carmen silver-gold mine in Mexico, it said on Dec. 23.
The company entered an asset acquisition agreement with Exploraciones Mineras Del Bajio SA de CV to acquire the property, which consists of two mining concessions totaling 71 hectares.
Under the agreement, Vangold will pay US$20,000 upon execution, US$30,000 on receipt of TSX Venture Exchange approval, issue 5.0 million common shares on closing and pay US$50,000 six months after the exchange approval.
The company will pay a 4% net smelter return royalty and a 15% net profits interest royalty to Exploraciones Mineras on minerals recovered from the stockpile.
The company will also pay a 3% net smelter return royalty, 1% of which is purchasable for US$1.0 million, and a 5% net profits interest royalty on all newly mined mineralization.
Vangold said it intends to commission an NI 43-101 report to establish a work program and budget for the property to outline priority targets for testing.