Sonoro Metals Corp. sold a 1% net smelter royalty on the Chipriona gold property in Mexico to Agnico Eagle Mines Ltd. for C$875,000.

The royalty was granted to Sonoro as part of Agnico Eagle's C$4 million purchase of Chipriona in December 2016. As part of the deal, Agnico Eagle had an option to buy back the royalty for C$1.5 million.

Sonoro said Jan. 2 that the cash injection provides greater value at this time compared with waiting for Chipriona to achieve production.

Proceeds will be used primarily for the upcoming phase-three drill program at its Cerro Caliche gold project in Mexico, where a total of 10,328 meters were drilled during a two-phase reverse circulation drilling program in 2018 and 2019.