Sonoro Metals (SMO-V) Nov 10, '14 has entered into an option agreement with Eagle Putt Ventures Inc., whereby Sonoro can earn a 50-per-cent interest in the 1,282-hectare Monroe property located in the Fort Steele mining division in southeastern British Columbia. The Monroe Property is located approximately 20 km south of Cranbrook, British Columbia and 40 km south of the former giant class Sullivan Zinc-Lead-Silver mine. Eagle Putt is a private company, arm's length to Sonoro, and managed by noted Vancouver-based geologists, Gordon and John Leask, who are acting as technical advisors for the Monroe exploration program.
In conjunction with the Option agreement, Sonoro proposes to undertake a private placement of up to $700,000, comprised of up to $500,000 of Non-Flow-Through ("NFT") units at a price of $0.10 per unit and up to $200,000 of Flow-Through units at a price of $0.12 per unit. Each NFT and Flow-Through unit will consist of one share and one share purchase warrant exercisable for a term of 3 years (the "Warrants"). Each Warrant will entitle the holder thereof to purchase one common share of Sonoro at an exercise price of $0.15 per Warrant share during the first year following the closing of the private placement, escalating to $0.20 in the second year and $0.25 in the third year, subject to the right of Sonoro to accelerate the expiry of the Warrants, if at any time after four months and one day from the issue date of the Warrants, during the term of the Warrants, the common shares of Sonoro close at a price at or above $0.40 per share for more than 20 consecutive trading days. The net proceeds from the offering will be primarily used by Sonoro for expenditures on the Monroe Property and for general working capital purposes. All securities issued in connection with the private placement will be subject to a hold period expiring four months and one day following the closing date. The private placement is subject to acceptance by the TSX Venture Exchange.
To exercise the Option, Sonoro must expend $2,500,000 on exploration and development on the Monroe Property over 4 years and pay Eagle Putt $400,000 in staged option payments over that same 4-year period. First-year commitments amount to $250,000 of exploration expenditures and a $50,000 cash payment. Following exercise of the Option, the parties anticipate that they will enter into a 50/50 joint venture to further advance the exploration and development of the Monroe Property.
"The Monroe option enables Sonoro to diversify its exploration portfolio to incorporate a base metal component in a region with a rich mining history," said Kenneth MacLeod, President and CEO of Sonoro. "We are especially pleased to draw upon the geological expertise of Gordon and John Leask and their history of involvement with the Monroe project."
The Monroe Property is situated at the intersection of two major Proterozoic aged crustal structures, specifically the Moyie Fault and the Sullivan Corridor. The Sullivan deposit is hosted in a similar geologic setting. Past work on the Monroe project dates from the discovery of the adjacent Fors Zinc-Lead-Silver massive sulphide prospect in 1966. The most recent investigation comprised a major drill campaign in 1997.
The Sullivan mine operated continuously from 1900 to 2001, yielding 160 million tons of ore grading 6.5% lead, 5.6% zinc and 2 oz/ton silver with a gross metal value at today's prices of approximately CAD$45 billion.
In 2007, following the closure of the Sullivan Mine, the Geological Survey of Canada published an extensive volume including detailed geological studies related to the Sullivan ore body. This information provided the impetus for a re-evaluation of the previous Monroe Property drilling. The property hosts a large volume of Sullivan-type alteration and a gabbro sill-dyke complex fringing a third-order basin, which is developed at the Sullivan Time interval. The depocentre is a 1 km-by-1 km sub-basin which has not been previously evaluated by drilling.
Sonoro proposes to drill to a depth of approximately 1,200 meters to test two specific stratigraphic intervals within the sub-basin, namely the Sullivan Time interval and the Sullivan Footwall Quartzite interval.
Stephen Kenwood, P. Geo. is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for this news release.
On behalf of the Board of SONORO METALS CORP.
Per: “Kenneth MacLeod”
KENNETH MACLEOD
President & CEO
___________________________________________________________________________________
Nov 3rd 2014 - NR
Sonoro Metals, a precious metals exploration and development company, announces that its Mexican subsidiary, Minera Breco SA de C.V. (“Breco”), has increased the size of its San Marcial property in Sonora State, Mexico to 1,016 hectares, through the execution of an Option to Purchase Agreement (the “Option Agreement”) for 372 hectares located contiguous to the 3 concessions acquired pursuant to the acquisition of Breco as announced on May 6, 2014. The San Marcial property is located 20 km east of Timmins Gold’s San Francisco mine.
The Option Agreement was preceded by a Letter of Intent dated September 10, 2012 between Breco and the vendor and secured with a US$10,000 payment. Pursuant to the Option Agreement, Breco has made an additional US$10,000 payment and may make future-stage cash payments totaling US$160,000 over three years, at Breco’s election. A 2% Net Smelter Return royalty on the concession may be purchased for US$750,000 at Breco’s election.
“The expanded San Marcial concession encompasses the sites of the original mine workings of the San Marcial and Soledad mines that were active during the early 1900s,” said Kenneth MacLeod, President & CEO of Sonoro. “Both mine areas have yielded samples showing combined gold and silver mineralization that is locally high grade, with broader low grade zones of disseminated to stockwork forms of mineralization.”
The San Marcial concessions are situated at the southern end of the prolific Sonora-Mojave Megashear, a regional scale structural system measuring approximately 50 km in width and 500 km in length. Gold mineralization in the San Marcial concession is hosted in Jurassic sedimentary rocks consisting of quartzite, shale and limestone, in addition to younger porphyritic intrusive rocks. Previous work on the San Marcial concessions and in the immediate area date back to the late 1980s when Cominco’s Mexican subsidiary performed work that culminated in the drilling of 4 RC holes, results of which are not available. Other small programs were undertaken by Barrick and Campbell Resources, with the latest work done by Queenstake in the mid 1990s. Sonoro plans to perform a comprehensive program on the property beginning with a thorough data compilation followed by a property scale soil geochemical sampling program to aid in delineating anomalous zones in this structurally complex region.
Gold mines in the Megashear have produced over 10 million ounces with about 25 million ounces remaining in resources. Mines in this trend include New Gold’s Mesquite Mine near Yuma, Arizona, in addition to several mines located in the northwest corner of Sonora State, including La Herradura (Fresnillo and Newmont); El Chanate (Au Rico Gold); and San Francisco (Timmins Gold).
Stephen Kenwood, P. Geo. is a qualified person within the context of National Instrument 43-101 and has read and takes responsibility for this news release.
On behalf of the Board of SONORO METALS CORP.
Per: “Kenneth MacLeod”
KENNETH MACLEOD
President & CEO
About Sonoro Metals Corp.
Sonoro Metals Corp. is a precious metals exploration and development company with a portfolio of exploration-stage properties located in the Mexican state of Sonora, one of the most productive mining states in Mexico. Sonoro is focused on becoming the premier junior exploration and development company operating in this prolific gold-silver mineralized geological environment. Sonoro has a skilled exploration team in Mexico, headed by Hermosillo-based Chief Geologist Melvin Herdrick, a professional geologist with over 35 years experience, including 9 years as the Chief Geologist for Phelps Dodge in Mexico from 1994 to 2003 and 5 years as Vice President of Exploration for Pediment Gold Corp. until its takeover by Argonaut Gold Inc. in 2011.
For further information, please contact:
Sonoro Metals Corp. - Tel: (604) 632-1764
Email: info@sonorometals.com
Website: www.sonorometals.com |
