Vancouver, B.C. – Prospero Silver Corp. (TSXV: PSL) ("Prospero" or the "Company") is pleased to announce that it has signed a binding agreement dated April 2, 2015 (the "Agreement") with CIC Resources Inc., a privately-held company incorporated under the laws of the Cayman Islands ("CIC") pursuant to which Prospero granted CIC an option on the El Petate property in Hidalgo State, Mexico.
Under the terms of the Agreement, CIC has the option to earn a 56% interest within 4 years by incurring total property expenditures of $4.0 million, including a minimum of 3,500 meters of drilling, making total cash payments of $1.1 million and issuing 2.0 million "Resulting Issuer" shares (details below).
Once the initial 56% interest is earned, CIC has a onetime option to earn an additional 19% interest (to a total of 75%) in the El Petate project over a two year period by incurring further property expenditures of $4.4 million; making cash payments of $1.1 million and issuing 1.5 million Resulting Issuer shares.
The Agreement also provides that upon CIC earning its interest in the property the parties will enter into a joint venture agreement to further explore and develop the property. The joint venture will, among other terms, include provisions for the dilution of a joint venture partner's participating interest if such partner does not fund its portion of a program.
On March 25, 2015 CIC and Delta Gold, a TSX.V listed company, announced they had signed a binding letter agreement pursuant to which CIC and Delta agreed to complete a reverse takeover of Delta by CIC (the "Resulting Issuer"), thereby resulting in a going public transaction for CIC. The Resulting Issuer is expected to be named "CIC Gold Inc." and will be headquartered in Vancouver, B.C.
About Prospero Silver Corp.:
Prospero is a Canadian resource company with the majority of its staff based in Mexico and who work for its wholly owned subsidiary Minera Fumarola, SA de CV (Fumarola). Prospero's mandate is that of a project generator in Mexico using its extensive experience with Mexican deposits to evaluate the potential of its properties and with a view to establishing strategic joint ventures.
For further information please contact:
Tel: (604) 288–7813
Forward-Looking Statement Cautions:
This news release contains certain "forward-looking statements" within the meaning of Canadian securities legislation, relating to the closing of a convertible loan financing. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. Factors that could cause actual results to differ materially from these forward looking statements include, but are not limited to, the Company's inability to obtain any necessary regulatory and shareholder consents or authorizations required for the proposed loan transaction and subsequent consolidation of the Company's share capital necessary to permit loan conversions into Conversion Units. The reader is referred to the Company's reports, publicly available through the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com, including the risk factors discussed in Prospero's November 27, 2009 prospectus. Except as required by securities laws and the policies of the TSXV, Prospero disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.