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Capitan Mining Drills 35.1m of 0.42 g/t AuEq Including 4.6m of 1.1 g/t AuEq and Has Entered into an Agreement to Buyback All Outstanding Royalties at the Penoles Project
Vancouver, British Columbia--(Newsfile Corp. - January 13, 2022) - Capitan Mining Inc. (TSX...
About this update from Capitan Silver Corp
[{"type":"text","content":"Capitan Mining Drills 35.1m of 0.42 g/t AuEq Including 4.6m of 1.1 g/t AuEq and Has Entered into an Agreement to Buyback All Outstanding Royalties at the Penoles ProjectVancouver, British Columbia--(Newsfile Corp. - January 13, 2022) - Capitan Mining Inc. (TSXV: CAPT) (\"Capitan\" or the \"Company\") is pleased to report results for six reverse-circulation (RC) drill holes from the Capitan Hill oxide-gold deposit, at its 100%-owned Peñoles project in Durango, Mexico. In addition, management is also pleased to report that after several months of negotiation they have entered into a purchase agreement to acquire a portfolio of royalties including a 2% royalty on the Capitan Gold oxide deposit from Exploraciones Altiplano.Highlights:Drillhole CARC 21-48: returned 35.1m of 0.42 g/t Aueq including 4.6m of 1.1 g/t AueqExtends mineralization 170m down-dip from hole 21-CARC-25 on cross section -100Royalty Buyback: Total purchase price of royalty portfolio is US $1.0M over two years, payable in cash and sharesThe Altiplano royalty portfolio included a 2% net smelter royalty (NSR) on the Capitan Hill oxide-gold depositAny shares issued to Altiplano are subject to right of first refusal (ROFR) allowing Capitan to market and place shares with investors if Altiplano elects to sellThis transaction with Altiplano in combination with Capitan's contractual option to retire Riverside Resources 1% royalty for C$250,000 will leave the Peñoles project royalty free and will enhance overall project economics for investorsDrilling to resume in late January following holiday breakAssays for 11 drill holes are pending Royalty Purchase AgreementCapitan Mining has entered into a purchase agreement to acquire all outstanding net smelter royalties (NSR's) on mining claims in the Peñoles project from Exploraciones del Altiplano, a private Mexican exploration company. The royalties covered a number of targets including the current gold-silver resource areas of Capitan and Jesús María. This included a 2% NSR on the Capitan Hill claims, 0.75% on claims covering the Jesús María, San Rafael, Pinchazo and Capitan 2 targets and 0.5% on third-party claims surrounding these targets. The total consideration for the transaction is US$1.0M, which will be paid 50% in cash and 50% in Capitan shares over a staged 2-year payment schedule. C...