Minaurum to Loan Guerrero Ventures C$770,000 for Biricu Project

Minaurum Gold Inc. (TSXV:MGG) announced that it’s agreed to loan Guerrero Ventures Inc. (TSXV:GV) C$770,000 to explore the Mexico-based Biricu project. Minaurum will conduct the exploration work as a contractor to Guerrero, while drilling services and other work will be taken care of by third-party contractors.
As quoted in the press release:

The loan bears interest at 8%. The loan agreement provides that the demand loan will, at Minaurum’s election, either be repaid in cash or, subject to the satisfaction of certain conditions, be converted into a direct 55% interest in the Biricu Project and an option to acquire a further 20% interest in exchange for funding $153,000 in exploration expenditures within 24 months of the conversion date. Minaurum is not entitled to demand repayment of the loan and accrued interest in cash until the earlier of a default under the loan agreement and March 31, 2016. Minaurum has also agreed to pay Guerrero an overhead fee of up to $77,000.

Darrell Rader, president and CEO of Minaurum, commented:

We are very excited to enter this agreement with Guerrero Ventures. The funds advanced will allow Guerrero to proceed with an exploration program designed by David M. Jones who discovered the neighbouring Los Filos deposit. The drill results at Biricu to date have returned GGB style alteration and related gold mineralization depth.

Click here to read the full Minaurum Gold Inc. (TSXV:MGG) press release.