Mar 21 2013
Prospero Silver Corp. ("Prospero" or the "Company") is pleased to announce that it has signed the definitive agreement with Silver Standard Resources Inc. ("Silver Standard") for an option to joint venture Prospero´s San Luis del Cordero property in central Durango State, Mexico.
The initial Letter of Intent with Silver Standard to Joint Venture Cordero was news released on September 17, 2012.
Under the terms of the Definitive Agreement, Silver Standard has the option to earn a 51% interest within 3 years by incurring total property expenditures of US$3.5M, a minimum of 4,000 meters of drilling in Year 1, and total cash payments of US$1.5M. Upon Silver Standard earning a 51% interest, the initial joint venture program shall have a minimum program cost of US$4M over 36 months and require the preparation of a pre-feasibility level study on the property. The Definitive Agreement also contains provisions related to additional joint venture exploration and development programs, including the dilution of a joint venture partner´s participating interest if such partner does not fund its portion of a program.
The mineral concessions comprising the San Luis del Cordero property are currently held by a Mexican company that is a related party to Prospero. The claimholder and Prospero have entered into an agreement whereby Prospero may acquire a 100% interest in the property (subject to a 2% net smelter royalty payable to the claimholder) contemporaneously with Silver Standard earning in its interest under the joint venture agreement.
Tawn Albinson, M.Sc., President of the Company, is a Qualified Person, as defined in NI 43-101, and is responsible for the technical content of this press release.