Minera Alamos (TSXV: MAI; CVE: MAI) has acquired a 16% interest in Prime Mining (TSXV: EPWR) — formerly known as ePower Metals — after buying 9.45 million Prime shares at 30¢ per share on August 30.
The transaction was part of an option agreement signed in June between Minera, Prime and Vista Gold (TSX: VGZ), giving Prime Mining the right to acquire a 100% interest in Minera’s Guadalupe de los Reyes gold project in Sinaloa state, Mexico. The agreement includes warrants that give Minera the right to buy up to 3.35 million additional Prime shares at 50¢ apiece over 24 months.
Minera says it does not plan to make further investments in Prime Mining.
The 156-sq.-km Guadalupe de Los Reyes project is 200 km north of the coastal city of Mazatlán and 30 km southeast of the town of Cosalá. The open-pit mine has an indicated resource of 6.8 million tonnes grading 1.73 grams gold per tonne and 28.71 grams silver per tonne for 380,000 contained oz. gold and 6.3 million contained oz. silver. Inferred resources add another 3.2 million tonnes grading 1.49 grams gold per tonne and 34.87 grams silver per tonne for 155,200 contained oz. gold and 3.6 million contained oz. silver.
At press time, Minera’s shares are trading at 17.5¢ apiece with a 52-week range of 8.5¢ to 18.5¢. The company has 376 million outstanding shares for a $65.8-million market capitalization.