Megastar Development Corp. secured exclusive options to purchase 100% of the Yautepec and Magdalena gold-silver concessions in Oaxaca, Mexico, from local company Minera Zalamera SA.
The company previously secured an option from Minera Zalamera and Arizona-based Paradex Inc. to acquire the Rama de Oro project in Oaxaca.
Megastar said June 4 that it can acquire the 4,861-hectare Yautepec concession by issuing 1,550,000 common shares and spending US$310,000 and can acquire the 480-hectare Magdalena concession by issuing the same number of shares and spending US$230,000 on exploration.
Minera Zalamera will retain a 2% net smelter returns royalty on each project, half of which can be bought back for about US$$1.7 million.
