- Colibri Resource Corp (TSXV:CBI) has entered an option agreement to sell 50 per cent of the El Mezquite Gold project to Silver Spruce Resources
- Through the agreement, Silver Spruce will acquire 50 per cent of Colibri’s Mexican subsidiary Yaque Minerales S.A for approximately C$965,692 in cash
- Silver Spruce will also have to perform $816,315 of exploration work over the night four years
- Upon full payment and completion of the exploration work, the companies will then form a joint venture to run Yaque and develop the El Mezquite gold project
- Colibri Resource Corp (CBI) is in the grey and is trading at 5.5 cents per share.
Colibri Resource Corp (TSXV:CBI) has entered an option agreement to sell 50 per cent of the El Mezquite Gold project to Silver Spruce Resources.
The El Mezquite project is currently owned by a subsidiary of Colibri, Yaque Minerales S.A.
Colibri has described El Mezquite as a drill ready precious metal project located 10 kilometres north of the town of Tepoca in Sonora, Mexico.
The purchase terms will see Silver Spruce hand over approximately C$285,627 in cash over the next 12 months, along with a promissory note for $680,065 due in October of 2023.
Upon full payment, Silver Spruce will acquire 50 per cent of Colibri’s subsidiary company Yaque Minerales S.A. The two companies will then complete a joint venture agreement to own and operate the company and develop El Mezquite.
The agreement also has work commitments totalling approximately $816,315 over the four-year terms of the agreement, with no specific annual requirements.
Silver Spruce will be on the hook for 100 per cent of that spend, during the first four years of the agreement.
Colibri’s CEO and President Ron Goguen said he was happy to be partnering up with Silver Spruce.
“The El Mezquite project is highly prospective, and the deal structure will allow the project to be further advanced and see Colibri still maintain a 50 per cent ownership” Ron commented.
Meanwhile, Greg Davison, a Director of Silver Spruce said he was very pleased that the company had acquired El Mezquite.
“The company is quickly reviewing the geological database and developing exploration plans to earn its 50 per cent interest in Yaque,” he said.
Colibri Resource Corp (CBI) is in the grey and is trading at 5.5 cents per share at 3:30 pm EDT.