Mirasol Resources Strategic Agreement Overview
Mirasol Resources Ltd. (TSX-V: MRZ) (OTC: MRZLF) has signed a definitive agreement with Ampere Metals Pty. Ltd. for the sale of the mineral rights and landholdings associated with the Virginia Silver Project. This agreement is significant for Mirasol as it provides financial support for ongoing exploration initiatives.
Key Details of the Sale Agreement
The sale includes a total cash consideration of $8 million, which will be paid over a seven-year period. Mirasol will not only benefit from immediate cash inflow but will also retain a 2% net smelter royalty (NSR) that can be monetized in the future. This multifaceted agreement represents a crucial development in Mirasol's business strategy.
Advantages for Mirasol Shareholders
Mirasol's President, Tim Heenan, emphasized the benefits of this agreement, stating it would add significant funds to their exploration projects. The NSR ensures that Mirasol's shareholders will continue to reap benefits from any successes realized at the Virginia Project as the resource continues to expand.
Virginia Silver Project Highlights
Discovered in 2009, the Virginia Project showcases high-grade silver mineralization and is noted for its outcropping vein-breccias. An updated resource estimate revealed that it holds an indicated mineral resource of 11.7 million ounces of silver at 357 g/t and an inferred mineral resource of 7.9 million ounces at 184 g/t silver. The potential for resource expansion remains promising as exploration efforts continue.
Agreement Structure
The definitive agreement allows Ampere Metals to first acquire a 51% interest for $4 million, followed by the opportunity to obtain the remaining 49% for an additional $4 million. This structured payment plan ensures that Mirasol secures both immediate financial benefits and ongoing revenue through the NSR agreement.
First Option Payment Structure
The payment for the first 51% interest will unfold as follows:
- $50,000 upon signing the memorandum of understanding (MOU)
- $300,000 at the time of signing the definitive agreement
- $900,000 within five months of signing the definitive agreement, or upon the listing of Ampere's shares
- $600,000 one year after the definitive agreement
- $450,000 at two years and $450,000 at two and a half years following the definitive agreement
- $625,000 after three years and another $625,000 three and a half years later
Second Option Payment Structure
The agreement also outlines the payments for the second option. Further installments of $1 million will occur every successive six months up to a total of $4 million over the designated period. Upon completion of this option, Mirasol will secure a 2% NSR royalty, with the potential for Ampere to buy it for $2 million.
About Mirasol Resources
Mirasol Resources is renowned for its extensive experience in exploration and development, actively engaging in projects throughout Argentina and Chile. Currently, Mirasol is self-funding its flagship Sobek Copper-Gold project, showcasing its commitment to developing its portfolio.
About Ampere Metals Pty Ltd
Ampere Metals, based in Australia, focuses on enriching shareholder value through robust silver and gold mining projects. With a seasoned management team, the company carefully selects economically viable assets that promise sustainable returns.
Contact Information
Tim Heenan, President & CEO
Troy Shultz, Vice President Investor Relations
Tel: +1 (604) 602-9989
Email: contact@mirasolresources.com
Website: www.mirasolresources.com
Frequently Asked Questions
What is the purpose of the agreement between Mirasol and Ampere Metals?
The agreement is aimed at selling the Virginia Silver Project while allowing Mirasol to retain a 2% royalty, benefitting both parties strategically.
How much is Ampere Metals paying for the Virginia Silver Project?
Ampere Metals will pay a total of $8 million over seven years for the mineral rights and landholdings associated with the project.
What resources are present at the Virginia Silver Project?
The project has an indicated resource of 11.7 million ounces of silver at 357 g/t and an inferred resource of 7.9 million ounces at 184 g/t silver.
What are the benefits for shareholders of Mirasol?
The shareholders benefit from immediate cash flow, continued involvement in potential resource expansions through the 2% NSR, and Mirasol's ongoing exploration success.
What other projects is Mirasol involved in?
Mirasol is also engaged in the Sobek Copper-Gold project, which highlights its active role in the mining exploration sector.
