Apr 10 2015
Prospero Silver Corp. ("Prospero" or the "Company") is pleased to announce that it has signed a binding agreement dated April 2, 2015 (the "Agreement") with CIC Resources Inc., a privately-held company incorporated under the laws of the Cayman Islands ("CIC") pursuant to which Prospero granted CIC an option on the El Petate property in Hidalgo State, Mexico.
Under the terms of the Agreement, CIC has the option to earn a 56% interest within 4 years by incurring total property expenditures of $4.0 million, including a minimum of 3,500 meters of drilling, making total cash payments of $1.1 million and issuing 2.0 million "Resulting Issuer" shares (details below).
Once the initial 56% interest is earned, CIC has a onetime option to earn an additional 19% interest (to a total of 75%) in the El Petate project over a two year period by incurring further property expenditures of $4.4 million; making cash payments of $1.1 million and issuing 1.5 million Resulting Issuer shares.
The Agreement also provides that upon CIC earning its interest in the property the parties will enter into a joint venture agreement to further explore and develop the property. The joint venture will, among other terms, include provisions for the dilution of a joint venture partner´s participating interest if such partner does not fund its portion of a program.
On March 25, 2015 CIC and Delta Gold, a TSX.V listed company, announced they had signed a binding letter agreement pursuant to which CIC and Delta agreed to complete a reverse takeover of Delta by CIC (the "Resulting Issuer"), thereby resulting in a going public transaction for CIC. The Resulting Issuer is expected to be named "CIC Gold Inc." and will be headquartered in Vancouver, B.C.
About Prospero Silver Corp.:
Prospero is a Canadian resource company with the majority of its staff based in Mexico and who work for its wholly owned subsidiary Minera Fumarola, SA de CV (Fumarola). Prospero's mandate is that of a project generator in Mexico using its extensive experience with Mexican deposits to evaluate the potential of its properties and with a view to establishing strategic joint ventures.
Source: http://www.prosperosilver.com/