Rochester has repaid $1,129,000 for 100% of Mina Real The Company holds a 100% interest in Mina Real which holds a 100% interest in the Mina Real Property, a gold silver property located in the state of Nayarit, Mexico, east of the state capital city of Tepic. On January 31, 2013 the Company exercised its option to re-acquire a 20% interest in Mina Real. The Company has entered into agreements with the vendors with respect to a payment plan of $5,500,000 over a term not exceeding 30 months in order to re-acquire the 20% interest previously sold. The Company has repaid $1,129,000 to August 31, 2013. The amount owing is secured by way of the 20% interest in Mina Real. Mina Real also owns 70% of Compania Minera Santa Fe S.A. de C.V. ("Compania Minera") which holds a 100% interest in the Santa Fe gold and silver property located immediately east of the Mina Real Property. To fully vest its 70% interest in Compania Minera, the Company has agreed to implement a program of exploration to determine if the Santa Fe Property can be economically exploited. In addition, if the exploration work is successful, the Company has agreed to provide the necessary capital to construct a processing plant capable of processing a minimum of 200 tonnes per day. The Company must also pay US $10,000 monthly while it is conducting exploration and development on the Santa Fe Property. Recently the Company initiated negotiations with the underlying owners to restructure the terms of the earn-in, given the nearby location of the Mina Real mill facilities.
The Mina Real Property is a producing gold and silver mine with additional development and exploration potential. The San Francisco Property is a source of additional mill feed for the Mina Real mill and the property has been brought into production on a fast track basis. The Santa Fe Property is a gold and silver exploration property.