Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCMKTS) announced in a news release it entered an agreement to acquire the La Plata silver-gold-copper property in southwest Colorado from two private entities.
The property, which spans 32.7 square kilometers, is located in the historical, high-grade La Plata mining district about 26 kilometers northwest of Durango. The La Plata acreage "hosts a large-scale, precious metals-rich porphyry system with associated high-grade silver and gold epithermal deposits," the release noted.
For the La Plata property, Metallic Minerals will pay each vendor 5 million units (each unit consists of one common share and one-half of a share purchase warrant) and, over the next four years, $250,000 upon achieving specific milestones. Also, each vendor will retain a 1% net smelter return (NSR) royalty. Metallic Minerals may pay each vendor $500,000 to lower the NSR royalty to 0.75%.
The Canadian exploration company launched a property-wide exploration program, collecting new and historical geologic, geochemical and geophysical data, to delineate targets for future drilling.
"We believe that systematic exploration at the La Plata property has the potential to not only rapidly enhance the size of the known historic mineral resources but to identify and expand the higher-grade zones within the broader porphyry and epithermal mineralized systems," Metallic Minerals President and CEO Greg Johnson said in the release.
The company noted that silver was first discovered in the district by Spanish explorers in the 1700s, high-grade silver and gold production has been documented from the 1870s through early 1940s, and Rio Tinto, Exxon and Freeport-McMoRan explored the area in the 1950s through 1970s. [NLINSERT]
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