A property agreement with two American companies will enable Tombstone Explorations (VSE) to expand into Central America.
The Vancouver-based junior can acquire the Minas de Oro copper-gold project in Honduras for US$1.1 million in cash, payable over 18 months. The deal calls for Tombstone to issue options on 1 million shares exercisable at $1.50 in the first year and at $2 in the second.
Kennecott and Fischer-Watt Gold (NASDAQ) have 80% and 20% interests, respectively, and will receive US$350,000 following a 60-day due diligence period, which will close May 1.
The agreement is an attempt on Tombstone’s part to acquire other Latin American projects, in addition to its Venezuelan interests.
Also, Tombstone will form a joint venture with Mar-West Resources (VSE), giving that company a 30% participating interest in Minas de Oro. Upon completion of the due diligence, Tombstone plans to carry out trenching and drilling to test three targets believed to have the potential for hosting open-pit and leachable gold-copper reserves. The program is budgeted at $750,000.
The company currently has $7.5 million in working capital and 18 million shares outstanding.
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