Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced that it has completed the final payment of $250,000 to secure a 100% interest in the Cerro Caliche mining concessions in Sonora, Mexico, fulfilling a $2.98 million option agreement initiated in 2018.
The company also formalized a 2% net smelter returns royalty agreement with the vendor, with the option to purchase the royalty after four years of production for $1 million for each percent of the royalty.
The option agreement represents 67% of the total surface area of the Cerro Caliche gold project.
The project, which comprises 15 mining concessions over 1,350 hectares, is progressing toward permitting for an open-pit, heap-leach operation.
Sonoro plans an initial 12,000 tonnes-per-day operation to generate cash flow for further exploration, with 70% of the project’s mineralized zones still unexplored.
“Despite the recent challenges of distressed capital markets for the precious metals sector as well as permitting delays in Mexico, we continue to maintain concession payments and advance the Cerro Caliche mine plan through the environmental review process,” Sonoro Gold CEO Kenneth MacLeod said in a statement.
“We are encouraged by new president Claudia Sheinbaum’s pragmatic and cooperative approach to the mining industry, compelling Sonoro to vigorously pursue approval of the mine permit application (MIA) which was originally filed with the Mexican environment agency SEMARNAT in May 2022.”