Nature's Call Brands Inc. (OTCBB:NATC) has announced that on January 27, 2011 the Company entered into a Letter of Intent with First Majestic Silver Corp., a senior silver producer that trades on the New York Stock Exchange and the Toronto stock exchange under the symbols NYSE:AG and TSX:FR respectively.
FMSC has agreed to grant the Company an option to acquire up to a 90% interest in the Jalisco Group of Properties (the "Properties") which are wholly owned by FMSC and are located in the Jalisco State, Mexico. FMSC is considered the purest silver company in the world and presently owns and operates three producing silver mines in Mexico, the La Parrilla Silver Mine, the San Martin Silver Mine and the La Encantada Silver Mine. It has grown from an development stage company into a world-class senior silver producer, producing 7,024,055 equivalent ounces of silver in 2010.
“This agreement marks a significant milestone for Nature's Call”
The Jalisco Group of Properties is comprised of mining claims covering 5,240 hectares consisting of six prospective areas of interest. Mining in the area dates back to the 16th century with more recent activity being documented in 1903 to 1935 when gold and silver was being actively mined. Nature's Call will be developing an extensive exploration program in the coming months and will release additional information on this exciting property once advancements are made. Upon execution of a definitive agreement, expected to take place within 90 days, Nature's Call will be required to issue 10 million shares of common stock to FMSC and spend $3million over the first 3 years to earn a 50% interest and $5million over 5 years to earn a 70% interest. In order to attain a 90% interest, Nature's Call is required to complete a bankable feasibility study within 7 years. FMSC will retain a 10% free carried interest and a 2.375% NSR.
"This agreement marks a significant milestone for Nature's Call," stated Juan Miguel Ríos Gutiérrez, the newly appointed President and Chief Executive Officer of Nature's Call. "Having personally been an important part of First Majestic's success over the last several years, I am extremely excited to be entering into this agreement with my former company. The Jalisco Group of Properties have significant potential and represent a huge step in my vision towards moving the company from exploration stage to full-fledged producer."
Source: First Majestic Silver Corp.