Tocvan Ventures has signed a definitive agreement with Colibri Resources to acquire the remaining 49% interest in the two original Pilar mining concessions in Sonora, Mexico.
Completion of this transaction will give Tocvan Ventures 100% ownership of its Gran Pilar gold-silver project.
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Under the terms outlined, Tocvan will pay Colibri C$3.6m in cash. The agreement stipulates that C$2m will be paid upon the closing date, with a further C$1.6m to be paid one year after closing.
In addition, Colibri will hold a 1% net smelter return (NSR) royalty on the project. Tocvan has the right to repurchase the NSR royalty for C$1m at any time.
The agreement also grants Tocvan the right of first refusal if Colibri seeks to sell the royalty to a third party.
Ownership of the mining claims will transfer from Colibri’s Mexican subsidiary to Tocvan’s corresponding unit.
The closing of the transaction is subject to standard conditions including required regulatory approvals, including from the Canadian Securities Exchange.
Tocvan currently owns 51% of the Pilar concessions and holds full ownership of surrounding expansion areas that comprise more than 21km² of the Gran Pilar property.
The Pilar concessions cover approximately 105 hectares and include the Main Zone, which has seen substantial drilling activity.
Tocvan CEO Brodie Sutherland said: “This acquisition represents a major milestone for Tocvan and our shareholders.
“Eliminating any joint ownership on the core Main Zone area simplifies our ownership structure, streamlines decision-making and allows us to fully optimise development plans as we advance toward pilot production and resource definition.”
According to recent operational updates, more than 9,000m of drilling has taken place at new exploration targets in the current year, with results for more than 6,000m pending.
Prior exploration at the Gran Pilar project has produced drill results including intersections of 83.5m at 1.3 grams per tonne (g/t) gold, 97.4m at 0.7g/t gold and 64.9m at 1.2g/t gold, among other reported intervals.
In April, the company mobilised additional heavy machinery at its Gran Pilar gold-silver project.
