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Mirasol Resources to option 'compelling' Virginia silver project to Golden Opportunity Resources

It first discovered the deposit in 2009 and has defined high-grade, epithermal style mineralization there

Mirasol Resources Ltd. -
The letter of intent means Golden Opportunity has the option to buy 100% of the project over three years

Project generator Mirasol Resources Ltd (CVE:MRZ) (OTCMKTS:MRZLF) revealed it is to option its Virginia Silver project in Argentina to Golden Opportunity Resources Corp (CSE:GOOP). 

Mirasol first discovered the deposit in 2009 and has defined high-grade, epithermal style mineralization there. A resource estimate in 2016 pegged higher confidence indicated resources at 11.9 million ounces of silver at 310 grams per ton (g/t) and a further inferred 3.1 million ounces of silver at 207 g/t.

In 2018, further prospecting of three new target areas, suggesting the potential to expand the project.

READ: Mirasol Resources unveils encouraging assays from Newcrest drilling at Gorbea gold project

"We are pleased to partner with Golden Opportunity to see the exploration upside at Virginia drill tested," said Norm Pitcher, President and CEO of Mirasol.

"With this transaction, Mirasol will retain exposure to new discoveries through our right to earn a significant share position in Golden Opportunity and as a royalty holder."

The letter of intent (LOI) means Golden Opportunity has the option to buy 100% of the project over three years, by making staged payments of shares and cash. It must complete a total of US$6 million of exploration over the three years.

MIrasol to retain 3% NSR

When completed, Golden Opportunity will have earned a 100% interest in the property, while Mirasol will retain a 3% net smelter royalty (NSR), of which 1% can be bought back by Golden Opportunity for US$2 million.

The deal is subject to customary conditions, including that Golden Opportunity must complete an equity financing of not less than US$1 million within 90 days. Mirasol has also granted the firm an exclusivity period to complete the transaction.

Mirasol will be the operator of the project during the option period and will receive a management fee.

Contact the author at [email protected]

Quick facts: Mirasol Resources Ltd.

Price: 0.405 CAD

TSX-V:MRZ
Market: TSX-V
Market Cap: $21.93 m
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