Colorado-based USMX (TSE) has acquired all of the outstanding capital stock of Mega Minerals, an Ecuadorian company which holds title to eight exploration concessions in the South American country.
In addition to the eight properties, which comprise about 80,600 acres, Mega holds the right to acquire title to four additional concessions covering about 5,900 acres.
The 12 concessions are in the Nambija-Zamora gold belt of southern Ecuador. Over the past eight years, independent miners have produced an estimated 1.9 million oz. gold from the adjacent Nambija district using crude mining and milling methods. Several recent gold discoveries have been made within the same gold belt.
The acquisition will cost USMX an estimated $120,000. In addition, the company is obligated to perform a set amount of exploration work and pay annual fees to the Ecuadorian government for each exploration concession. USMX is also required to pay the seller 10% of the net proceeds derived from any production on the property after recovery of all capital expenditures.
Exploration, including sampling of mineralized bedrock and evaluation of the placer potential along the Nangaritza River, is scheduled to begin within the next few weeks. “The company is enthusiastic with respect to this acquisition,” says Dennis Lance, vice-president of exploration at USMX.
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