Mirasol Resources Ltd (CVE:MRZ) (OTCMKTS:MRZLF), the project generator, said Thursday it has now closed the previously announced option on its Virginia Silver project in Argentina, where drilling is expected to kick off in late Q3 or early Q4 this year.
The company has inked the definitive agreement with Golden Opportunity Resources Corp (CSE:GOOP), which has now completed an oversubscribed C$2.2 million financing, providing it with the financial firepower to advance the site, Mirasol told investors in a statement.
The pair are now establishing an exploration committee to finalize exploration and drilling plans.
"There are a variety of targets at Virginia, including the down-dip and along strike extensions of veins already in the resource, mapped but undrilled veins, and geochemical anomalies which may indicate the presence of new vein structures. All of these provide the potential to significantly increase the resource," said Norm Pitcher, the chief executive at Mirasol.
Mirasol first discovered the deposit in 2009 and has defined high-grade, epithermal style mineralization there.
A resource estimate in 2016 pegged higher confidence indicated resources at 11.9 million ounces of silver at 310 grams per ton (g/t) and a further inferred 3.1 million ounces of silver at 207 g/t. In 2018, further prospecting suggested the potential to expand the project.
Under the terms of the deal, Golden Opportunity has the option to buy 100% of the project over three years, by making staged payments of shares and cash. It must complete a total of US$6 million of exploration over the three years.
Mirasol will be the operator of the project during the option period and receive a management fee.
Upon completion, Mirasol will retain a 3% net smelter royalty (NSR) royalty, of which 1% can be bought back by Golden Opportunity for US$2 million.
Contact the author at email@example.com