North Bay Resources (OTC:NBRI) has entered into a binding letter of intent to acquire privately held Bendito Resources which owns a portfolio of assets located in Mexico.
Under the agreement, North Bay will make a one time cash payment of US$25 million ($36.13 million) to Bendito.
Bendito’s project portfolio includes the Oposura, Alacran and Promotorio projects.
Oposura is a zinc-silver-lead, fully permitted 1,000 tonnes per day, construction ready project. The project covers 908 hectares and has had 308 holes drilled to date.
Alacran is an advanced exploration phase project, covering 5,433 hectares, located 17km south of the Buenavista copper-zinc-silver mine which has 9 billion tonnes in reserves. To date, 48,903m of drilling across 306 holes has been completed at Alacran.
Promotorio is a copper-gold project located in Chihuahua State, Mexico.
Bendito also owns five additional projects including Tecolote, San Agustin, Panchita, Telix and Sara Alicia. These projects are considered prospective for copper, zinc, silver, gold and graphite.
Sara Alicia is currently excluded from the agreement due to a prior exploration agreement. Discussions remain ongoing at this time.
Meanwhile at the company’s Bishop Gold Mill, operations resumed earlier this month with the processing of a test shipment of ore grading 3.38 ounces per tonne gold from the Fran Project.
A concentrate delivery was completed on 25 March at Reno, Nevada, with settlement pending.
The Fran Gold Project is located next to Centerra Gold’s (TSX:CG) Mt Milligan Mine. The project’s east zone represents a zone of gold and increasing copper resource expansion potential. The deposit also remains open to the south and at depth.
North Bay Resources is a gold-focused company with assets in the US and Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: North Bay Resources
