(Kitco News) - Heliostar Metals (TSX.V: HSTR, OTCQX: HSTXF) announced Monday that it has entered into definitive agreements with Argonaut Gold to acquire the Ana Paula gold project and option the San Antonio gold project in Mexico.
The company said that the purchase price for Ana Paula is US$10.0M cash, adding that subsequent milestone payments are comprised of US$10.0M of cash payments and US$10.0M of cash or share payments.
Ana Paula is permitted for an open pit mine with measured and indicated mineral resources of 1.46 Moz gold at 2.17 g/t gold and 3.27 Moz silver at 4.8 g/t silver.
San Antonio is a high grade oxide deposit containing measured and indicated mineral resources of 1.73 Moz of gold grading 0.83 g/t gold.
“The current market conditions have created the opportunity for Heliostar to acquire advanced and meaningful new projects. Ana Paula and San Antonio are outstanding projects that the company believes will create value for its shareholders. Each project offers a development pathway and advanced exploration targets that could unlock value for the shareholders into the future,” the company said in a press release.
Heliostar is a junior exploration and development company with a portfolio of high-grade gold projects in Alaska and Mexico. The company’s flagship asset is the 100% controlled Unga gold project on Unga and Popof Islands in Alaska. In Mexico, the company owns 100% of three early stage epithermal projects in Sonora that are highly prospective for gold and silver.
Argonaut Gold is a Canadian gold company engaged in exploration, mine development and production. Its primary assets are the El Castillo mine and San Agustin mine, which together form the El Castillo Complex in Durango, Mexico, the La Colorada mine in Sonora, Mexico and the Florida Canyon mine in Nevada, USA. The company also holds the construction stage Magino project, the advanced exploration stage Cerro del Gallo project and several other exploration stage projects, all of which are located in North America.
