14th Jul 2016 12:37
LONDON (Alliance News) - Canada-listed Plata Latina Minerals Corp on Thursday said it has signed a letter of intent with a unit of FTSE 100-listed miner Fresnillo PLC giving the latter the option to acquire the Naranjillo property in Mexico.
Under the agreement, Fresnillo will have the option to acquire Naranjillo for a payment of USD2.2 million in cash over three years, plus a USD3.0 million exploration spending commitment for the project.
Plata Latina also will get a 3.0% royalty revenue on the project.
The Naranjillo project is located in Guanajuato, Mexico, adjacent to Fresnillo's Cerro Blanco project.
Shares in Fresnillo were down 1.0% to 1,916.00 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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