S2C Global Systems and its wholly-owned subsidiary S2C Global Resources (STWG) have signed an agreement to acquire 100% ownership of the San Cristobal mine from Mineria Coliman, for an undisclosed sum.
Located in the Mexican state of Michoacán, the iron ore producing San Cristobal mine has strategic access to the Port of Lazaro Cardenas.
Under the terms of the agreement, S2C Global will have to pay an initial $750,000, and then an additional $750,000 as a new investment into the property over the next year.
S2C Global will make additional payments to Mineria Coliman amounting to $4min, a bid to complete the terms of the agreement. The payments will be spread over the next 48 months.
S2C Global president Daniel Roth said the completion of the San Cristobal acquisition is a milestone for the company's shareholders.
The company believes that the acquisition will allow it to accelerate its plans for San Cristobal mine, and bring it up to a full-scale production.
Additional details pertaining to the transaction will soon be released, such as the mine's resource potential, daily throughput capacity and a timeline for the plan of operations.
S2C Global Resources is in the business of extracting both base and precious metals from known resource deposits primarily in the ore rich regions of Mexico.