leadf
logo-loader
viewTocvan Ventures Corp.
(
CSE:TOC
)

Tocvan finalizes agreement for the transfer of the El Picacho gold-silver property option in Sonora, Mexico

It said the agreement is a prime example of its ability to negotiate transactions which add significant accretive value to shareholders while allowing previous operators and landowners to benefit greatly from a successful outcome as it works to de-risk the property toward economic viability

Tocvan finalizes agreement for the transfer of the El Picacho gold-silver property option in Sonora, Mexico
Extensive surface exploration has been conducted historically, defining five gold targets on the project

Tocvan Ventures Corp said it has completed a due diligence process and completed and executed the final agreement to acquire Millrock Resources’ option to acquire up to 100% interest in the El Picacho mining concessions located in the state of Sonora, Mexico.

The project, located 140 kilometers north of Hermosillo in Sonora, Mexico, is fully accessible by road. 

Extensive surface exploration has been conducted historically, defining five gold targets on the project. Millrock and Tocvan believe these targets will be ready for drill testing with surface confirmation via trenching. A permit is currently active to allow for trenching and drilling on the project.

WATCH: Tocvan Ventures completes Phase 2 drilling at Pilar, begins prep work for trench program in October

“This is a prime example of the ability of Tocvan to negotiate transactions which we believe add significant accretive value to Tocvan shareholders while allowing previous operators and landowners to benefit greatly from a successful outcome as Tocvan works to de-risk the property toward economic viability,” CEO Derek Wood said in a statement.

“We like to create win-win opportunities for all stakeholders and feel that we have accomplished this with execution of this agreement.”

Under the terms of the option agreement, Tocvan must make cash payments of US$1,989,600 to the underlying concession owners, the Suarez brothers, over a five-year term to acquire 100% interest in the project. 

If Tocvan exercises its option to purchase a 100% interest from the Suarez brothers, Millrock will vest with a 2% net smelter return (NSR) royalty. Tocvan may purchase back 1% for US$1 million. The royalty contains a provision for an annual advance minimum royalty (AMR). The initial AMR payment to Millrock would be US$25,000. The amount of the AMR will double each year until commercial production occurs. Any AMR payments made can be deducted from NSR royalty payments.

Tocvan is an exploration development company, created to take advantage of the prolonged downturn in the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels they can build upon previous success. 

Tocvan currently has approximately 29 million shares outstanding and is earning into three exciting opportunities, including the Pilar Gold-Silver project and the El Picacho Property within the Caborca Orogenic Gold Belt both located in Sonor, and the Rogers Creek Copper project in southern British Columbia.

Contact the author at stephen.gunnion@proactiveinvestors.com

Quick facts: Tocvan Ventures Corp.

Follow
CSE:TOC

Price: 0.88 CAD

Market Cap: $24.44 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of named herein, including the promotion by the Company of in any Content on the Site, the Company receives from said issuer annual cash...

FOR OUR FULL DISCLAIMER CLICK HERE

Tocvan Ventures closes agreement to acquire Millrock Resources El Picacho...

Tocvan Ventures CEO Derek Wood joined Steve Darling from Proactive to share details the company has done their due diligence and now they have completed the final agreement to acquire Millrock Resources’ 100% interest in the El Picacho mining concessions located in Mexico. Wood telling...

1 week, 5 days ago

2 min read