In a news release, Southern Silver Exploration Corp. (SSV:TSX.V; SSVFF:OTCQB; SEG1:FSE) announced that "it has entered into an agreement with Monarca Minerals Inc. (MMN:TSX.V) to purchase the El Sol mineral claim in Durango, Mexico."
The company advised that the claim is situated contiguous with its Cerro Las Minitas mineral property which it operates jointly with its partner Electrum Global Holdings L.P. The firm advised that the El Sol purchase is a completely separate investment made solely by the company and that the claim will not become part of the Cerro Las Minitas joint venture with Electrum.
The company reported that the cost of acquiring the mineral claim is US$300,000 payable in three equal installments. The first payment is due on execution of a definitive agreement, the second after 12 months and the final payment at the end of 18 months. The agreement also requires the firm to pay a 2% net smelter royalty which Southern Silver has the right to purchase at any time for US$1 million.
The firm noted that "the 63 hectare El Sol claim is strategically located on the northwestern boundary of the Bocona block of claims and is adjacent to the area of the Cerro which hosts the four mineral deposits currently identified within the Cerro Las Minitas claim package."
The company additionally provided a reconcilement of several recent warrant and stock option exercises. The firm summarized that during the current fiscal period proceeds from such warrant and option exercises totaled $1,255,484 and combined with proceeds of $4,206,500 from its 2019 Unit private placement, will be used for working capital and to cover the company's share of costs associated with exploration and development programs at Cerro Las Minitas and El Sol. Southern Silver also announced that it has granted approximately 2.5 million incentive stock options to directors, officers and consultants which are exercisable at a price of $0.12 per common share.
Southern Silver Exploration Corp. describes itself as a precious metal exploration and development company that is focused on discovery of world-class mineral deposits in the southern U.S. and north-central Mexico. The company indicated that its primary focus is on the Cerro Las Minitas silver-lead-zinc project. The project is situated in the heart of Mexico's Faja de Plata, which it states hosts multiple world-class mineral deposits including Naica, Penasquito, Pitarrilla and San Martin. The firm's property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico in the U.S.
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