Guerrero Exploration (CVE:GEX) has said that it will issue a total of 150,000 shares at a price of 6 cents each with respect to its agreement with Riverside Resources (CVE:RRI) on the Chapalota gold property in Mexico.
Late last month, the company said that it has decided it will not pursue its option on the Chapalota property.
In March 2011, Guerrero and Riverside inked a letter agreement whereby Guerrero could acquire a 70 per cent interest in Riversides Chapalota property for 1.25 million common shares, total cash payments of $200,000, and $2.25 million in exploration expenditures on the property within 36 months of the agreement.
The shares announced today, for which it received regulatory approval, will be the final issuance under that agreement, and will be subject to a 4 month hold period, Guerrero said.
The Chapalota property is located around 50 kilometres northeast of the city of Mazatlan in south-central Sinaloa, Mexico. The property covers an area of 8,073 hectares and is located on the western margin of the Sierra Madre Occidental Belt.
Last week, Guerrero said it closed its financing for a total of nearly $0.5 million in gross proceeds. The company issued a total of around 9.1 million units at 5 cents each.
Each unit consisted of one common share and one share purchase warrant. Each warrant is good for 5 years from closing, at a price of 10 cents per common share.
The new funds will be used for general working capital and for exploration on its properties.
The miner said it is immediately undertaking an additional financing on the same terms of up to $600,000, to be used for the same purposes.