PR, Oct. 2, 06, Cerro Jumil property acquisition
tinyurl.com
Mon Oct 2, 2006
Esperanza Completes Acquisition of Cerro Jumil Gold Property; Increases Land Holdings by 80%
Denver, Colorado: Esperanza Silver Corporation ("Esperanza" or "the Company") announced today that it has reached agreement with Recursos Cruz del Sur S.A. de C.V. ("RCS") to amend its existing agreement to allow for the early exercise of its option to purchase the Cerro Jumil gold property in Morelos State, Mexico. Esperanza will pay CDN$417,375 in cash and issue 500,000 common shares of the Company to RCS. Under the original terms, Esperanza had remaining payments of US$ 25,000 due on May 7, 2007 and US$1,895,000 due on May 7, 2008. RCS will maintain a 3% net smelter return royalty on production from the property.
The revised agreement is subject to regulatory approval and final registration of title. Esperanza will also reimburse RCS for any costs it may be subject to as a result of the transaction.
Esperanza has also applied for 1,359 hectares of new mining concessions in promising mineralized areas adjacent to the existing claims. Upon the granting of final title, this will result in a total of 3,066 hectares controlled by Esperanza in the Cerro Jumil area, an increase of 80%.
Cerro Jumil is the Company's 100% controlled gold project in southern Mexico. To date over 5,000 meters of diamond core drilling has been completed outlining two major zones of gold mineralization. These include the West and Southeast Zones which extends for over 200 and 600 meters respectively. Both are open along their northern and southern extensions and to depth. The Company has recently contracted a drill rig and anticipates the start of a new drilling program in the fourth quarter.(i) |
