Resource firm Asia Broadband (AABB) has agreed to acquire a 100% stake in the Bonanza Gold Mine Project in Nayarit, Mexico from Martin Augusto Vallejo Lujambio.
The deal consideration of $6m includes cash payment of $2m and $4m in restricted Asia Broadband shares.
Based on assay results from recent samples and drilling activities, the Bonanza property holds high-grade gold.
The 19.25ha Bonanza property is located in the prolific mining region of Acaponeta in Nayarit, about 3km from the town of El Carrizo.
Acquisition of the prospective high yield asset forms part of Asia Broadband’s strategic expansion plan to increase physical gold holdings through the acquisition of gold production assets.
The firm’s mining assets acquisition plan focuses on operations in Mexico where the firm holds a comparative advantage of development resources.
In a press statement, Asia Broadband said: “Company management is excited by the Bonanza acquisition for its potential for rapid expansion, high production, low operating costs and strong contribution to gross profits.”
In September 2021, Asia Broadband has signed a letter of intent with an undisclosed firm to secure a stake of 80% in the Tequila Gold Mine Project in Mexico.
The project is located about 70km north of Guadalajara, San Martin de las Canas in the municipality of Tequila, Jalisco.
As per previous exploration and drilling by a Canadian mining company, the Tequila property holds gold and silver mineralisation veins with high-grade potential.
Asia Broadband is engaged in the production and supply of precious and base metals. It primarily serves Asian markets.