Vangold Mining Corp. said May 31 that its subsidiaries signed deals to acquire seven mining claims spanning a total of 2,798 hectares in Mexico for C$10,000 and 3,375,000 common Vangold shares.
The Patito I and II claims, which will be acquired by Vangold's Obras Mineras El Pinguico SA de CV unit, are 1,500 meters west of the El Pinguico gold project, providing a possible extension of the project's mineralized zone and expanding the land package to 747 hectares.
The rest of the claims, Analy I and II, El Ruso, Camilla and Ysabela, will be purchased by CanMex Silver SA de CV. These claims are at the exploration stage and are located within the Mexican silver belt.
As part of the deal, the vendors will receive a 2.5% net smelter royalty over the properties. Each of the Vangold units can repurchase half of the royalty on their respective claims for C$500,000.
The acquisition is at arm's length and remains subject to the approval of the TSX Venture Exchange.