Prospero Silver Corp (CVE:PSL) said it, along with Fortuna Silver Mines, had signed the previously announced option agreement meaning the latter can acquire up to a 70% interest in the Pachuca SE project in Mexico.
On Monday this week, the Vancouver-based company said drilling had begun on a six hole, 4,200-meter program to test a number of potential vein targets.
To earn the interest, Fortuna must spend US$8 million and complete a preliminary economic assessment, with a minimum spend of $1 million in the first year.
The near-7,000-hectare land package is 24 km southeast of the city of Pachuca, Hidalgo along strike from the historic Pachuca-Real del Monte epithermal vein camp.
Shares were unchanged in Toronto at $0.06.
Contact Giles at [email protected]