Aura Resources Inc. (TSX-V:AUU) (“Aura” or the “Company”) announces that it has entered into a definitive agreement with Minaurum Gold Inc. (TSX-V:MGG) (“Minaurum”) and its Mexican subsidiary whereby Minaurum will acquire an interest in the Company’s East Taviche property located in Oaxaca, Mexico.
In accordance with the terms of the agreement, Minaurum will acquire an initial 80% interest in the East Taviche project for the following consideration:
- the issuance of 100,000 common shares in the capital of Minaurum;
- re-imbursement of all Taviche project concession fees paid by Aura during 2018 and payment of the remaining concession fees to bring the property into good standing until January 31, 2019, to a maximum of US$80,000; and
- the issuance of an additional 100,000 common shares in the capital of Minaurum upon receiving all relevant approvals and consents required to be obtained for the commencement of exploration and drilling activities at the East Taviche project.
Additionally, Aura will grant to Minaurum an exclusive option to acquire the remaining 20% of the project for a total purchase price of CDN$1,000,000. Until exercise of that option, Aura’s 20% interest shall be free-carried with no obligation to co-fund project costs and will not be subject to dilution (together, with the sale of an 80% interest in the East Taviche Property described above, the “Transaction”).
Upon acquiring the initial 80% interest, Minaurum will act as operator of the project having exclusive authority and control over the direction and management of the business and operations of the East Taviche project.
The Transaction is subject to the approval of the TSX Venture Exchange.
Aura initiated involvement with the Taviche project during 2006 and has operated the project since 2010. Both Aura and Minaurum recognize that the property holds good potential for the further discovery of silver and gold along the prospective Mezcal structure. Robert Johansing, CEO of Aura stated, “We are very pleased to have Minaurum advance the Taviche project. Minaurum is a regional explorer focused on the exploration and development of high-grade gold and silver projects in Mexico and is led by experienced exploration and management teams. This transaction assures that exploration will continue at the Taviche project allowing Aura to realize value for its investment in the project and to focus on new opportunities.”
Source: Company Press Release