Nov 6 2015
Minaurum Gold Inc. is pleased to announce that it has agreed to loan Guerrero Ventures Inc. CDN$770,000 to explore the Biricu Project located in the Guerrero Gold Belt, Mexico. The exploration work will be conducted by Minaurum, as contractor to Guerrero. Drilling services and certain other work will be conducted by third party contractors.
The loan bears interest at 8%. The loan agreement provides that the demand loan will, at Minaurum's election, either be repaid in cash or, subject to the satisfaction of certain conditions, be converted into a direct 55% interest in the Biricu Project and an option to acquire a further 20% interest in exchange for funding $153,000 in exploration expenditures within 24 months of the conversion date. Minaurum is not entitled to demand repayment of the loan and accrued interest in cash until the earlier of a default under the loan agreement and March 31, 2016. Minaurum has also agreed to pay Guerrero an overhead fee of up to $77,000.
"We are very excited to enter this agreement with Guerrero Ventures. The funds advanced will allow Guerrero to proceed with an exploration program designed by David M. Jones who discovered the neighbouring Los Filos deposit," stated President and CEO Darrell Rader. "The drill results at Biricu to date have returned GGB style alteration and related gold mineralization depth."
Biricu Project
The Biricu Project comprises more than 41,000 hectares of highly prospective intrusive rock types identical to those seen in Goldcorp's neighbouring Los Filos Mine and Torex Gold's nearby El Limon deposit. It borders Minaurum's Vuelcos Del Destino project to the West and South.
Guerrero recently completed a 5,387.8m drill program that targeted three priority areas of the property. Drilling highlights included: 26.98 metres (m) grading 1.07 g/t gold and 0.29 g/t silver, including a zone of 6.85m grading 2.78 g/t gold and 0.92 g/t silver; 1.68m grading 0.83 g/t gold and 3.10 g/t silver (see Guerrero's news release dated January 26, 2015). Work completed to date over the property includes geological mapping and prospecting, 298 rock samples, 187 stream sediment samples and 390 soil samples. In addition, a VTEM airborne magnetic and electromagnetic survey of 1,403 line kilometres was completed in September 2012. A follow-up airborne gradiometer magnetic survey of 2,052 line kilometers was completed in January 2015.
The Biricu Project is under option to Guerrero from Alamos Gold pursuant to an option agreement December 22, 2011, which gives Guerrero the right to earn a 100% interest in the Biricu Project by making cash and share payments (previously completed by Guerrero) and incurring exploration expenditures of CDN$4,000,000 by December 22, 2015 ($3,153,831 completed by Guerrero to date). In addition, the option agreement provides for Alamos to be granted a 2% NSR royalty and, if a bankable feasibility study is prepared for the Biricu Project, to receive a payment equal to CDN$10.00 per ounce of gold resources defined in such study.
Steve Maynard, the Vice President Exploration of Minaurum and a Qualified Person as defined by National Instrument 43-101, has reviewed and approved, but has not verified, the technical data in this release due to the technical data having been prepared by Guerrero.
Source: http://www.minaurum.com/