Prime Mining Corp., formerly ePower Metals Inc., secured rights to earn 100% of the Los Reyes gold project in Mexico's Sinaloa State under a binding letter of intent entered late April with Minera Alamos Inc.
The company said Aug. 28 it will focus its resources and capital to immediately develop the Los Reyes project.
Prime Mining paid US$1.5 million cash to reimburse Minera Alamos for a previous option payment toward Vista Gold Corp. and will assume the remaining payments totaling US$3.0 million.
The company also issued 9,450,000 post-consolidation common shares and 3,350,000 purchase warrants allowing Minera Alamos to acquire further shares at 50 cents per share for two years.
Additionally, Prime Mining completed a nonbrokered private placement of 29,051,327 units at 30 Canadian cents per unit to raise about C$8.7 million.
Proceeds will be used to advance exploration and development at Los Reyes and to satisfy working capital requirements.
Meanwhile, the company appointed Daniel Kunz and Paul Larkin as directors, replacing Michael Collins and Michael Kobler, who stepped down to focus on other activities.
