Silvermex Resources (TSX: V.SMR, Stock Forum) announced Friday that it has entered into an agreement with Aurcana Corporation (TSX: V.AUN, Stock Forum) to acquire a 100% interest in Aurcana’s silver/gold/lead/zinc Rosario Property in Mexico.
Silvermex notes that the Rosario Property consists of 18 concessions totaling approximately 8,515 hectares and is located within two kilometres of Silvermex's 1,250 hectare San Marcial Silver property.
Under the terms of the acquisition, Silvermex will pay Aurcana C$125,000 and issue 1 million shares upon signing.
Silvermex will pay an additional $125,000 CDN within 90 days of signing, and upon successful production or within 24 months, and will issue an additional 1 million shares and pay Aurcana C$3 million CDN in 6 installments.
Silvermex will also assume the balance of payments due to the property’s previous owners, Grupo Mexico, namely US$350,000 due in July and US$650,000 USD due in January.
“The Rosario Property was acquired in order to consolidate Silvermex's land position in the San Marcial area and will help to accelerate Silvermex's objective of becoming a near-term silver producer. The proximity to Silvermex's San Marcial project combined with the silver resource and existing infrastructure at Rosario will significantly reduce both time and capital expenditures required for production,” says the company.
Shares of Silvermex fell 5% to 19 cents Friday while Aurcana Corporation shares were unchanged at 11 cents.
On the Aurcana Bullboard, in a post entitled “Rosario sold”,maxncompany said: “$3.25 mill cash over time, assume $1 million debt and issue 2 million shares of Silvermex[sic].”
Meanwhile, RetiringYoung asked: “Can anyone explain why Rosario was no longer in the company plans and if they got fair value. 3M over that length of time....it would have just looked better leaving the property on the books as an asset for the story[sic]”
And, ennuifiat said: “They look like AUN before it bought La negra..... humm. GL guys I hope AUN can make a come back for you all but i had to sell out last summer. I may pick up some SMX ... I always wanted to see Rosario up and running[sic]”
