Para ResourcesInc. has entered into a letter of intent with Otu Gold Ltd. to acquire mineral concessions comprising approximately17,000 hectares surrounding the ElLimon gold mine in Colombia for US$1.0 million.
The transaction covers all mining concessions, registered contractswith processing plants and drilling permits, according to a May 5 statement.
Under the terms, Para is required to pay US$500,000 upon closing,US$250,000 pursuant to a promissory note and US$250,000 payable by the issuanceof common shares.
Otu Gold will be granted a 2% net smelter royalty, which canbe reduced to 1% via a US$1.0 million payment.
Meanwhile, Para noted that it appointed Glenn Walsh as a director,replacing Luiz Augusto Bizzi, who stepped down.