en.Wedoany.com Reported - Tocvan Ventures has signed a definitive agreement with Colibri Resources to acquire the remaining 49% interest in two original Pilar mining concessions in Sonora, Mexico, thereby obtaining 100% ownership of its Gran Pilar gold-silver project.
Under the terms of the agreement, Tocvan will pay Colibri a total of CAD 3.6 million in cash, with CAD 2 million due at closing and CAD 1.6 million payable one year after closing. Upon completion of the transaction, Colibri will retain a 1% net smelter return (NSR) royalty on the project. Tocvan has the right to repurchase the NSR royalty at any time for CAD 1 million. Tocvan also holds a right of first refusal should Colibri seek to sell the royalty to a third party.
Ownership of the mining rights will be transferred from Colibri's Mexican subsidiary to Tocvan's corresponding entity. The closing of the transaction is subject to standard conditions, including necessary regulatory approvals from the Canadian Securities Exchange and other authorities.
Tocvan currently holds a 51% interest in the Pilar concessions and fully owns the surrounding expansion area covering over 21 square kilometers, which is part of the Gran Pilar mining district. The Pilar concessions span approximately 105 hectares and include the main mining zone, where extensive drilling has already taken place.
Tocvan CEO Brodie Sutherland stated that this acquisition is a significant milestone for Tocvan and its shareholders. Eliminating any co-ownership in the core main mining zone simplifies the ownership structure, streamlines decision-making, and allows the company to fully optimize development plans as it advances toward trial production and resource definition.
According to the latest operational update, over 9,000 meters of drilling have been completed this year on new exploration targets, with results from more than 6,000 meters still pending. Previous exploration drilling results at the Gran Pilar project include: 83.5 meters grading 1.3 g/t gold; 97.4 meters grading 0.7 g/t gold; 64.9 meters grading 1.2 g/t gold, among other reported intercepts. In April, the company mobilized additional heavy machinery at the Gran Pilar gold-silver project.
