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Prospero Silver Corp. (TSXV:PSL) reported that its Mexican subsidiary Minera Fumarola, SA de CV, and underlying claimholder Compañia Minera Terciario, SA de CV, have signed a joint venture agreement with Hochschild Mining, PLC subsidiary Minera Hochschild Mexico, SA de CV, to advance the Baborigame project.
Prospero Silver Corp. (TSXV:PSL) reported that its Mexican subsidiary Minera Fumarola, SA de CV, and underlying claimholder Compañia Minera Terciario, SA de CV, have signed a joint venture agreement with Hochschild Mining, PLC subsidiary Minera Hochschild Mexico, SA de CV, to advance the Baborigame project.
As quoted in the press release:
Under the terms of the agreement, Minera Hochschild Mexico has the option to earn a 51% interest within 3 years by making total property expenditures of US$3.7M, including a minimum of 3,500 meters of drilling in Year 1, and total cash payments of US$1.9M. If Prospero elects not to participate in the 51%/49% joint venture at Year 4, Hochschild will have the option to earn an additional 14% with property expenditures of at least US$4M and a cash payment of US$200,000. If Prospero elects not to participate in the resulting 65%/35% joint venture, Hochschild will have the option to earn an additional 10% during years 5 and 6 by financing the project through to completion of a Definitive Feasibility Study, and making cash payments of US$200,000 (by the end of Year 5) and US$600,000 (by the end of Year 6). For the 75%/25% joint venture, each party will be responsible for contributing funding for the development of the property on a basis proportionate to their ownership percentages. If either party elects not to participate fully in funding, its ownership percentage will be diluted accordingly. Either party that dilutes below 10% ownership will revert to a 1% NSR (net smelter royalty).
Tawn Albinson, President and CEO of Prospero, commented:
Hochschild is an established precious metal mining company and their participation ensures the financial capacity required to advance the Baborigame project through exploration to development. We have worked with Hochschild in the past and know their operational expertise will be a valuable component in determining the economic viability at Baborigame.
Click here to read the full press release.
