PR, 8/20, Mexico property options.
Esperanza to Acquire Advanced Exploration Properties in Mexico
Monday August 20, 11:58 am ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2007) - Esperanza Silver Corporation (TSX VENTURE:EPZ - News; PINK SHEETS:ESPZF - News) is pleased to announce that it has signed a letter of intent to acquire a four-year option on seven gold and silver exploration properties in Mexico's Durango and Chihuahua States. All of the properties include identified drill targets and each will be actively explored over the coming months. The properties are to be acquired from Exploraciones del Altiplano and Compania Minera Terciario (Altiplano/Terciario), two privately-held and related companies.
The properties lie within the Sierra Madre and Altiplano regions in Mexico - home to some of the country's most recent gold and silver exploration successes. Examples include Penasquito, Pitarilla, Juanicipio (Fresnillo), La Platosa and Ocampo. The seven properties increase Esperanza's exploration portfolio to ten in Mexico and five in Peru. These are in addition to the advanced-stage San Luis and Cerro Jumil projects in Peru and Mexico, respectively.
Altiplano/Terciario will collaborate with Esperanza's geologic staff to support its exploration effort in Mexico on a contract basis. The two related companies have a long history of exploration in Mexico, having dedicated the last 15 years towards building a portfolio of exploration properties in Mexico.
"The acquisition of this drill-ready exploration package is a noteworthy addition to Esperanza's portfolio because it provides a significant position within one of the world's most exciting exploration areas. This purchase emphasizes our strategy for growth through a combination of our own grassroots efforts and acquisitions such as Altiplano/Terciario's advanced-stage properties," said Bill Pincus, President and CEO of Esperanza.
Under the terms of the agreement Esperanza will pay US$30,000 and issue 20,000 common shares upon signing the definitive agreement for a four-year purchase option of the seven properties. Over the option term Esperanza will make periodic payments totaling up to US$85,000 and will issue up to 190,000 common shares per property, depending on whether the property is maintained for the full option period or if it is relinquished earlier. Esperanza will be committed to drill a minimum of 1,200 meters per property during the first 12 months.
The acquisition of any property can be made at the end of the option period by payment of US$ 350,000 and issuance of between 450,000 and 1.2 million common shares dependent on the price of Esperanza shares at the time. Altiplano/Terciario will retain a 2% net smelter royalty. The agreement is subject to all regulatory approvals.
(sheesh, will have to update the header again, are they overextending themselves?) |
