Orex Minerals Inc. said Dec. 4 that it signed a nonbinding letter of intent to acquire the San Luis del Cordero silver-copper-zinc project in Mexico from Exploraciones del Altiplano SA de CV.
The parties are now drafting a formal agreement, and its terms call for the company to issue 1 million shares and pay US$2.5 million over a four-year period from signing.
In addition, Orex will also commit to spending US$400,000 in the first year and US$600,000 in the second year.
The Cordero project is a skarn and epithermal vein-hosted silver-copper-zinc district located 155 kilometers northeast of Durango. Its concessions cover 2,825 hectares and include the full extent of the known mineralization.
Orex President Gary Cope said the acquisition gives the company a third quality asset, with upside exploration potential, in the prolific Silver Trend of north-central Mexico.