The Conversation (0)
Canasil Resources Inc. (TSXV:CLZ) announced that it has signed a binding letter agreement with MAG Silver Corp. (TSX:MAG). The agreement allows MAG to earn up to a 70-percent interest in Canasil’s Mexico-based Salamandra silver-copper-zinc-lead project.
Canasil Resources Inc. (TSXV:CLZ) announced that it has signed a binding letter agreement with MAG Silver Corp. (TSX:MAG). The agreement allows MAG to earn up to a 70-percent interest in Canasil’s Mexico-based Salamandra silver-copper-zinc-lead project.
As quoted in the press release:
Under the agreed terms, MAG will have a first option to earn 55% interest in the Salamandra project by incurring C$5,500,000 in exploration expenditures and making C$750,000 cash payments to Canasil over four years, including payment of C$150,000 upon signature of the Letter Agreement. The first year exploration expenditures of $1,000,000, which must include at least 3,000 metres of diamond drilling, will be a firm commitment. Upon completion of the first option, MAG will have a second option to earn an additional 15% interest, for a cumulative 70% interest in the Salamandra project, by either preparing and delivering to Canasil a NI43-101 compliant feasibility study within four years, or by incurring an additional C$20,000,000 in exploration expenditures over four years, with a minimum annual expenditure of C$2,500,000.
Click here to read the full Canasil Resources Inc. (TSXV:CLZ) press release.
