VANCOUVER, May 21, 2020 /CNW/ - Mirasol Resources Ltd.
(TSX-V: MRZ) (OTCPK: MRZLF) (the "Company" or
"Mirasol") is pleased to announce the signing of a
definitive agreement with Golden Opportunity Resources Corp.
("Golden Opportunity") (CSE:GOOP) for its Virginia Silver project (the "Project") in the
Santa Cruz Province of Argentina.
Golden Opportunity has completed an oversubscribed C$2.2 million financing providing it with ample
capital to move the project forward. The response to the
exploration strategy and silver exposure of Golden Opportunity has
been very positive and Mirasol is pleased to become one of its
significant shareholders.
Norm Pitcher, President and CEO
of Mirasol stated: "We are pleased to close this transaction and to
start working with the team at Golden Opportunity. 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."
Mirasol and Golden Opportunity are setting up an exploration
committee to finalize the exploration and drilling programs at
Virginia over the upcoming season. It is expected that drilling
will start in late Q3 or early Q4 2020.
Terms of the Transaction
Mirasol granted Golden Opportunity the option to acquire 100% of
the Project over 3 years by:
- Making share issuances totalling 19.9% of the shares
outstanding (the "S/O") of Golden Opportunity at the time of
vesting:
-
- On signing of the definitive agreement: 9.9% of the S/O
(completed – 3,745,269 shares issued)
- On first anniversary: 5% of the S/O
- On Second anniversary: 5% of the S/O
- On third anniversary: top up to 19.9% of the S/O (inclusive of
the previous issuances)
- Completing US$6M in exploration
expenditures
-
- Year 1: US$1M (firm
commitment)
- Year 2: US$2M
- Year 3: US$3M
- Mirasol will be the operator of the project during the option
period and receive a management fee.
Upon completion of the option, Golden Opportunity will have
earned a 100% interest in the Project and Mirasol will retain a 3%
NSR royalty, of which 1% can be bought back by Golden Opportunity
for US$2M.
About Mirasol Resources Ltd
Mirasol is a premier project generation company that is focused
on the discovery and development of profitable precious metal and
copper deposits, operating via a hybrid joint venture and
self-funded drilling business model. Strategic joint ventures with
precious metal producers have enabled Mirasol to maintain a tight
share structure while advancing its priority projects that are
focused in high-potential regions in Chile and Argentina. Mirasol employs an
integrated generative and on-ground exploration approach, combining
leading-edge technologies and experienced exploration geoscientists
to maximize the potential for discovery. Mirasol is in a strong
financial position and has a significant portfolio of exploration
projects located within the Tertiary Age Mineral belts of
Chile and the Jurassic age gold
and silver district of Santa Cruz Province
Argentina.
Forward Looking Statements: The information in this news release
contains forward looking statements that are subject to a number of
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those anticipated in
our forward-looking statements. Factors that could cause such
differences include: changes in world commodity markets, equity
markets, costs and supply of materials relevant to the mining
industry, change in government and changes to regulations affecting
the mining industry. Forward-looking statements in this release
include statements regarding future exploration programs, operation
plans, geological interpretations, mineral tenure issues and
mineral recovery processes. Although we believe the expectations
reflected in our forward-looking statements are reasonable, results
may vary, and we cannot guarantee future results, levels of
activity, performance or achievements. Mirasol disclaims any
obligations to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as may be required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Mirasol Resources Ltd.