Sonoro Metals wholly owned Mexican subsidiary Minera Mar de Plata has entered an assignment agreement with Agnico Sonora to sell its Chipriona project in Mexico for $4m.
Under the deal, Sonora Metals' subsidiary will also receive 1% net smelter returns royalty, which can be bought by Agnico at any time for $1.5m.
The sold project is situated within the Mulatos mining district of Sonora state. It comprises multiple concessions amounting to 515ha and covering the Chipriona group of concessions and Los Pinos concession.
The Chipriona concessions make up nearly 4% of Sonoro’s total exploration portfolio of 14,351ha.
Agnico Eagle Mines will pay the consideration in four tranches. The first instalment of $650,000 will be paid after signing the agreement, with the three remaining amounts will be paid after registration of title at Mexico’s Public Registry of Mining.
Sonoro president and CEO Kenneth MacLeod said: "We are pleased with the significant value being realised by Sonoro’s shareholders from the sale of the Chipriona project. The $4m cash injection into Sonoro’s treasury without any resulting share dilution provides ample capital for the ongoing exploration of the company’s San Marcial project in Mexico and the Hilltop project in Alaska."
The technical team of Sonoro is currently preparing the 2017 exploration programme focused at San Marcial gold/silver project, where it holds the option to purchase the mine.
It is located 20km from Timmins Gold’s operating San Francisco mine within the Sonora-Mojave Megashear geologic structure of Sonora state.
Recently, Sonoro conducted exploration at this site that confirmed the presence of four anomalous zones within the 1,000ha concessions.
Subsequent geological mapping and sampling are scheduled next month.
Sonoro is also earning 60% interest from its Hilltop Gold Project in Alaska where it owns around 12,836ha.