Montero Mining and Exploration Ltd. has signed a binding purchase and sale agreement to acquire a 100% interest in a private Chilean company, which holds various mineral rights to exploration claims that make up the Isabella gold silver project in Chile. Isabella’s exploration claims cover an area of 67 km2.
The agreement is subject to corporate and legal process in Chile and regulatory approval.
“Montero has secured the highly prospective Isabella gold silver project in Chile where the company can utilize its gold silver exploration, discovery and development expertise in a tier-one mining jurisdiction,” President and CEO Dr. Tony Harwood said. “The company is assessing previous exploration data with a view to carrying out a drill program in fall 2020.”
The project is located in the Southern Coastal Range of Chile, approximately 200 km south of Santiago. The Coastal Range contains numerous gold and copper occurrences hosted within a package of intermediate intrusives, sediments and volcanics of Mesozoic age.
The Isabella gold silder project area hosts numerous structurally controlled quartz veins that have been mapped over an area of approximately 12 km long and 4 km wide. A review of field reports on mapping and sampling prepared by the previous owner indicate high gold — silver concentrations within quartz veins with values of up to 48 grams per metric ton (g/mt) gold and 629 g/mt silver.
Under the terms of the agreement, Montero has acquired a 100% interest in ChileCo, which holds all the mineral interests to the Isabella gold silver project. ChileCo was purchased for a nominal amount and by taking over the earn-in obligations of cash payments totaling $450,000 to be made by August 2022.
ChileCo directly holds 100% of the mineral rights to 18 km2 of mineral claims and has two subsidiaries with 49 km2 under option agreements. In Subsidiary 1, Montero has an 85% interest in Isabella West mineral claims while in Subsidiary 2, Montero is earning an 85% interest in Isabella East mineral claims. The mineral claims held by both subsidiaries are subject to joint venture and mining option agreements with local parties. Montero is reviewing several drill target areas that have been identified and permitted for drilling by the previous owners in order to commence a drill program.