Canadian firm Silverton Metals has agreed to acquire the Margaritas Gold-Silver Property in Durango, Mexico, from exploration firm Zapata Exploration and 0924682 B.C.

Zapata and 0924682 is a private firm, which is controlled by Chris Osterman and Raul Diaz-Unzueta.

The deal will see Silverton acquiring Zapata’s Mexican Subsidiary, Impulsora De Proyectos Mineros, S.A. De C.V. (Impulsora), which owns the Margaritas property.

According to the agreement, Silverton Metals will issue 750,0000 of its common shares, as well as grant a 0.5% net smelter return royalty from the property.

The deal awaits TSX Venture Exchange’s approval and is also subject to certain customary conditions.

Silverton Metals president and CEO John Theobald said: “We are very excited about the Margaritas acquisition as it contains a high-grade gold vein open in all directions with visible gold and the potential to be a bonanza-grade deposit.

“Both the environmental permit application and community agreement process have already commenced, which have given the company a head start on the exploration of the project. Favourable topography facilitates drilling and or tunnelling and eventually would also facilitate underground mining.

“The simple mineralogy suggests that the gold could be easily extracted by gravity and leaching methods.”

The company plans to refine mapping and sampling, rehabilitate roads, and prepare the project for drilling before the end of 2022.

The Margaritas property is an underexplored, high-grade epithermal gold-silver deposit comprising two concessions, which cover a total area of 500ha in the state of Durango.

These two concessions include Margaritas and Ampliacion las Margaritas.

Silverton Metals said that the property’s mineralisation comprises native gold and accessory silver, and gangue of silica, clays, and traces of pyrite.