Columbus Silver Corporation (TSXV:CSC) has entered into an option agreement with Santa Fe Gold Corporation, wherein Santa Fe may earn 100% interest in the Mogollon Project in New Mexico for US$4,500,000.
As quoted in the press release:
On signing the Agreement, Santa Fe has paid Columbus Silver US$100,000. To keep the Agreement and the option in good standing, Santa Fe must pay to Columbus Silver a further US$150,000 within 3 business days of TSX Venture Exchange approval of the Agreement, US$500,000 on or before December 30, 2012 (or 3 business days after TSX Venture Exchange approval, if not earlier obtained), and four payments of $937,500 on each of June 30, 2013, December 30, 2013, June 30, 2014, and December 30, 2014. Additionally, Santa Fe must maintain the Property in good standing by paying applicable underlying claim maintenance and lease payments to Columbus Silver, which will in turn remit same to the appropriate parties.
Robert Giustra, the President and CEO of the Company, commented:
This Agreement with Santa Fe enables Columbus Silver to advance exploration on existing precious metals projects and to continue to generate new opportunities in a fashion that is not dilutive to shareholders.