Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

News Update


Resource Company to Acquire Mineral Concession in Mexico
News Update

Share on Stocktwits


The purchase expands the holdings of its principal project there.

Megastar Development Corp. (MDV:TSX.V) announced in a news release it entered an agreement to acquire, through its subsidiary Minera Mazateca, the entire Cerro Minas mineral concession from Gunpoint Exploration for $100,000 and 800,000 common shares.

The concession, which consists of 899 hectares of surface area, is in Mexico on the Oaxaca epithermal gold-silver belt. "The property is an inlier to Megastar's principal Yautepec project concession and covers 5 kilometers' strike length of highly prospective ground along a northwest trending caldera structural margin," the release noted.

"Given the exciting results we have announced to date from our Yautepec property, the addition of this land is very compelling for us," Megastar Exploration Manager and Director David M. Jones said in the release. "Completely surrounded by our current land holdings, Cerro Minas displays similar epithermal characteristics to targets that we have already identified."

With this agreement with Gunpoint, Megastar consolidates more than 7 kilometers of strike length of targets with great potential for epithermal and skarn mineralization.

According to the terms of the deal, Gunpoint will retain a 1.5% net smelter return royalty on Cerro Minas. Megastar may purchase 0.5% of that royalty for $1 million at any time.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Want to read more about Gold and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe