Cayden Resources (CYD-V) May 21, '14 has acquired the Shamba-la concession located within the El Barqueno concessions in Jalisco, Mexico. Shamba-la is approximately 400 hectares in size and is located along the northwest border of the Pena de Oro target where Cayden is currently drilling. Under the terms of the acquisition, Cayden will pay a total of $251,000 (U.S.) and issue 150,000 common shares for a 100-per-cent interest. Cayden paid $51,000 (U.S.) on signing, and the remaining balance and common shares are due once title is registered under the name of Minas Chaparral S.A. de C.V., Cayden's subsidiary.
The Shamba-la concession is subject to a 2.5-per-cent net smelter returns royalty payable to the vendor, which is buyable at any time for $500,000 (U.S.).
President and chief executive officer Ivan Bebek stated: "The acquisition of Shamba-la is a key development for the El Barqueno project. We believe Shamba-la provides an excellent opportunity to expand on the recent drilling success we are having at the Pena de Oro target."
The agreement is subject to the approval of the TSX Venture Exchange, and the shares will carry a four-month hold period commencing on the date of issuance. |
