- Colibri Resources (CBI) has signed a letter of intent to sell 50 per cent of its Jackie gold project in Sonora, Mexico, to Silver Spruce Resources
- In exchange, Colibri will receive a total of approximately C$66,100 (US$50,000) in cash and the same amount in Silver Spruce shares within a period of 12 months
- Silver Spruce will also be required to spend around $132,200 (US$100,000) in exploration expenses, with a minimum of $66,100 (US$50,000) within 12 months
- The sale is expected to reduce Colibri’s exploration risk and eliminate the near-term dilution of its shares
- Colibri Resources (CBI) is currently down 7.14 per cent and is trading at 6.5 cents per share
Colibri Resources (CBI) has signed a letter of intent to sell 50 per cent of its Jackie gold project in Mexico, to Silver Spruce Resources.
Located five kilometres to the south-southwest of the town of Tepoca, the project sits within the west-central portion of the Sierra Madre Occidental Volcanic Complex, which in turn sits within the prolific north-west trending Sonora Gold Belt.
Under the terms of the agreement, Silver Spruce may acquire 50 per cent of the Jackie Project by paying a total of C$66,100 (US$50,000) in cash to Colibri along with the same amount in common shares over a 12-month period.
Silver Spruce will also be required to assume roughly $132,200 (US$100,000) in exploration expenses, including a minimum of $66,100 (US$50,000) within the first 12 months.
Upon completion of the transaction, a joint venture will be formed with expenses thereafter to be split equally between the two companies.
Ron Goguen, President and CEO of Colibri Resources, said he is enthusiastic about the prospect of working with Silver Spruce at the Jackie Project.
“This is the second project that they have taken a 50 per cent interest in with us in less than six months.
“Their commitments to earn 50 per cent of each of these projects significantly reduces Colibri shareholder’s exploration risk, eliminates near term dilution of shares to provide funding for these two projects and also provides Colibri additional cash and equity upside,” he added.
Phase one of an initial exploration program is expected to include geological mapping, soil and rock geochemistry, drone photography, data compilation and Leapfrog modelling. Following this work, the companies will seek environmental permitting in preparation for a later drill program.
Colibri Resources (CBI) is currently down 7.14 per cent to 6.5 cents per share at 2:22pm EDT.