Falcon Gold Corp (CVE:FG) (OTCPINK:FGLDF) said Tuesday it has successfully renegotiated an agreement for its interest in the ERSA property in Argentina.
The company said that it has signed an amended agreement with Esperanza Resources SA and Rojnica Ivo, both vendors of the 11,072-hectare gold-silver-copper property.
Under the renegotiated agreement to earn its initial 80% interest, Falcon has agreed to make payments to the vendors over a four-year option period totalling 500,000 Falcon shares and 500,000 warrants. During the four-year option period, Falcon is to make minimum expenditures on the property amounting to US$350,000.
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Each warrant to be issued is exercisable for one Falcon share valued at a price set on each date of issue at 125% of the closing price for Falcon shares traded on the TSX Venture Exchange for a 12-month term.
Falcon also has the option to purchase the remaining 20% interest for another two million shares and a US$1.5 million payment which includes a 1% NSR buy back with the vendors retaining 1%.
ERSA is located within the renowned Sierra de Las Minas District of southern La Rioja province, home to several past-producing gold and silver mines.
Sampling work conducted by Falcon in 2018 included a 1 metre sample that returned 5,619 parts per billion (ppb) gold. A 2.5-metre continuous chip sample from the north end of the Callanas West exposure showed 5,905 ppb gold, 20.6 ppm silver and 0.3% copper. Additional samples included 27 grams per ton (g/t) gold across 50 centimetres from the Callana III vein. From the Callana IV vein – across a 50 centimetre width where visible gold was identified – assays returned 45.7 g/t gold with silver content greater than 100 ppm and copper analyses of 7,869.6 ppm.
Falcon CEO Karim Rayani told shareholders that the company was “thrilled” to return to Argentina and work with Esperanza Resources.
“Our previous work on the ERSA concessions has given Falcon the ability to jump into its exploration and development work with its advanced knowledge of the locations and structural controls on significant gold, silver and copper zones,” Rayani said in a statement.
Falcon’s Argentina team is headed by Juan Carlos Navas, a long-time associate and seasoned mining executive.
The junior company is focused on acquiring and advancing projects in the Americas.
Contact Angela at angela@proactiveinvestors.com
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