Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF) announced it has completed the final concession payment for its flagship Cerro Caliche gold project in Sonora, Mexico.
The company, through its wholly owned Mexican subsidiary, Minera Mar de Plata (MMP), made the last payment of about US$920,000 to acquire a 100% interest in the El Rosario mineral concessions.
The payment fulfills an Option to Purchase and Promise to Assignment Agreement originally signed in March 2018 with a vendor based in Arizona, for total consideration of US$1.79 million.
The Rosario Concessions represent 30% of the total surface area of the Cerro Caliche project. Following the final payment, Sonoro executed an Assignment of Title to Mining Concession Agreement, transferring ownership of the concessions to MMP.
Under a Royalty Agreement, the vendor will receive a 2% Net Smelter Returns (NSR) royalty on proceeds from mineral sales from the Rosario Concessions. Sonoro retains the option to purchase the NSR for US$1 million per 1% of royalty.
The Cerro Caliche project comprises 15 contiguous mining concessions totaling 1,350.10 hectares. The concessions were optioned in 2018 under five separate agreements for total consideration of US$5.18 million.
Sonoro stated that all financial obligations under these agreements have now been met, and the concession titles have been assigned to MMP.
MMP also controls 100% of the surface rights for the Cerro Caliche project. As previously announced, Sonoro secured these rights through an agreement with the owner of the Cerro Prieto Ranch.
Beginning September 2028, the company’s surface rights will expand to include the entire Cerro Prieto Ranch, encompassing the neighbouring Cerro Prieto mine.
The Cerro Caliche project is in the final permitting stage for a proposed open-pit, heap leach gold mining operation. The property contains a low-sulphidation epithermal vein structure with more than 25 northwest-trending, near-surface gold-mineralized zones.
Sonoro also announced the resignation of CFO Salil Dhaumya. He will assist the company during a transition period.
Board member and Corporate Secretary Katharine Regan has been appointed interim CFO while a permanent replacement is sought.