Feb 18 2011
Cortez Gold Corp (TSX VENTURE:CUT) has announced that it has entered into a binding Letter of Intent with Altiplano Goldsilver S.A. de C.V. of Mexico, whereby Cortez can acquire 100% of the issued and outstanding shares of the Mexican company.
Altiplano Goldsilver has title to 20 hectares of land in Matehuala, S.L.P., Mexico, and to the buildings and equipment situated thereon (the "Processing Plant").
The Processing Plant is in an advanced stage of construction (70% complete) and is scheduled for start-up in the next 8 months. Designed to process 16,500 tons per year of lead and copper concentrates with high content of gold and silver, the Plant will produce an estimated 48,000 ounces of gold and 1,900,000 silver ounces per year.
Altiplano Goldsilver offers a streamlined alternative and fills the current high demand in Mexico created by the numerous small miners in the surrounding area as well as the medium size producers whose only current option is to sell their concentrates to smelters at a high processing cost. Altiplano's Plant will offer a lower processing charge, similar conditions of payment, and the capability of receiving small lots and purchasing high-grade concentrate.
The concentrates will be treated using a dissolution process, which is cleaner and more economical than the foundry technology. Silver and fine gold will be extracted as dore, and the tailings, which will contain high levels of base metals along with small amounts of silver and gold, will be marketed to the smelters at metal value.
In consideration of the acquisition, Cortez will issue 6,000,000 shares to the shareholders of Altiplano Goldsilver with a commitment to spend US$1.3 million to develop and complete construction of the processing plant over the next 18 months.
The acquisition is subject to TSX Venture Exchange acceptance.
Source: Cortez Gold Corp