Lucky Minerals Inc. said Feb. 20 that it signed a binding letter of intent with Monterra Resources SA to acquire the Fortuna gold property in Ecuador.
The Fortuna property is held by private Ecuadorian company Goldmindex SA and covers 54,985 hectares comprising 12 mineral concessions in the Azuay province.
As payment, Lucky Minerals will issue 16 million shares to Monterra after signing a definitive deal, which is due by March 5 if due diligence can successfully conclude by Feb. 28.
Lucky Minerals will also loan Goldmindex US$253,000 to meet immediate payment obligations related to maintaining ownership over the concessions. Lucky has also agreed to advance to Goldmindex US$531,000 to be used to pay 2018 license renewals for all concessions in the Fortuna property.