Altiplano Metals (APN) has signed an agreement to wholly purchase a gold asset known as the San Pedro mining concession for C$3 million.
Located in Nicaragua's La Cruz del Rio Grande Municipality, the mineral property rights cover 16,806 hectares and sits within an area of Tertiary-aged volcanic rocks that hosts several existing gold deposits, including Calibre Mining's La Libertad and El Limon gold mines, and Condor Gold's La India gold mine.
Under the terms of the deal, Altiplano will issue a total of 10 million common shares to the four vendors at a deemed price of $0.30 each.
2 million of these shares will go to Luc English, while Severin Holdings, Jemseg Capital and Ian Harris will each receive a package of just over 2.66 million shares.
San Pedro is currently drill-ready with the potential for the completion of an early maiden mineral resource estimate.
A number of significant trench intercepts have established clear targets for testing the continuity of gold mineralisation both along strike and to depth, and will assist in developing a 3D model of the mineralised body.
Previous exploration work outlined roughly nine kilometres of veins through rock chip and soil sampling, which Altiplano says will require geological mapping and trenching to quantify the width and grade of the gold mineralisation and to identify additional gold targets.
"Exploration work at San Pedro has identified several zones of particularly noteworthy gold grade in near surface oxide as well as in previous drilling beneath the oxide zone," said Alastair McIntyre, CEO of Altiplano Metals.
"The geological information is excellent and indicates that clearly defined drill targets occur over an approximate 15-kilometre strike length of mineralised gold-bearing epithermal quartz veins," he added.
Altiplano Metals is currently up 2.44 per cent to $0.21 per share at 11:22am EST.