William offers $3m for Velardena stake

Montreal-listed William Resources intends to acquire a 40% interest in BLM Minera Mexican.

The acquisition would result in William owning 80% of BLM Minera and the Velardena silver-gold project in Mexico’s Durango state.

William has offered Minorca Resources (VSE) $3 million and a 1% net smelter return royalty (effective for 11 years) for its 40% interest. If it accepts, Minorca will receive $100,000 upon closing of the purchase agreement, $900,000 on July 6, 1995, and $1 million on July 6, 1996 and on July 6, 1997. Velardena has a possible and probable reserve of 2.8 million tonnes averaging 3.6 grams gold and 313 grams silver per tonne, as well as 4.4% combined lead, zinc and copper. It will be capable of producing 67,000 oz. of gold-equivalent per year. Production is expected to start in the second quarter of 1995.