Signs Definitive Option For Argentinian Project
Mirasol Resources Ltd (TSX-V: MRZ) (OTCPK: MRZLF) has signed a definitive agreement with Golden Opportunity Resources Corp. for its Virginia Silver project in the Santa Cruz Province of Argentina.
In related news, Golden Opportunity has completed an oversubscribed C$2.2 million financing providing it with ample capital to move the project forward.
Mirasol President and CEO, Norm Pitcher, the response to the exploration strategy and silver exposure of Golden Opportunity has been very positive and Mirasol is pleased to become one of its significant shareholders.
“We are pleased to close this transaction and to start working with the team at Golden Opportunity,” Mr Pitcher said.
“There are a variety of targets at Virginia, including the down dip and along strike extensions of veins already in the resource, mapped but undrilled veins, and geochemical anomalies which may indicate the presence of new vein structures. All of these provide the potential to significantly increase the resource.”
Mirasol and Golden Opportunity are setting up an exploration committee to finalise the exploration and drilling programs at Virginia over the upcoming season. It is expected that drilling will start in late Q3 or early Q4 2020.
Mirasol granted Golden Opportunity the option to acquire 100% of the Project over three years by:
- Making share issuances totalling 19.9% of the shares outstanding (the “S/O”) of Golden Opportunity at the time of vesting:
- On signing of the definitive agreement: 9.9% of the S/O (completed – 3,745,269 shares issued)
- On first anniversary: 5% of the S/O
- On Second anniversary: 5% of the S/O
- On third anniversary: top up to 19.9% of the S/O (inclusive of the previous issuances)
- Completing US$6M in exploration expenditures
- Year 1: US$1M (firm commitment)
- Year 2: US$2M
- Year 3: US$3M
- Mirasol will be the operator of the project during the option period and receive a management fee.
Upon completion of the option, Golden Opportunity will have earned a 100% interest in the Project and Mirasol will retain a 3% NSR royalty, of which 1% can be bought back by Golden Opportunity for US$2M.