Questcorp Mining (CSE:QQQ) has entered into a definitive option agreement with Riverside Resources (TSX-V:RRI) to acquire the La Union Project in Sonora, Mexico.
The La Union Project, covering 2,520.2 hectares, is a carbonate replacement deposit hosted by neoproterozoic sedimentary rocks overlying crystalline paleoproterozoic rocks of the caborca terrane.
Under the option agreement, Questcorp will pay C$100,000 ($111,637), issue shares equal to 19.9% of the company, as well as incur C$5.5 million in expenditure.
During the term of the option agreement, the vendor will remain the program operator for La Union.
CEO Saf Dhillon says the Riverside team have done an “exceptional job” in consolidating the group of claims that make up La Union.
“Having entered into the option agreement and completed this 43-101 Technical Report is an important accomplishment towards our goal of advancing the project and working our way to earning up to 100% of this drill-ready property in a highly active region with multiple known deposits, major players and mines in production,” Dhillon says.
Riverside CEO John-Mark Staude says the company is excited to work with Questcorp to conduct exploration on La Union’s targets.
The company adds that target zones have potential to uncover bulk mineable gold and polymetallic deposits. Further drilling is warranted to test the target zone’s economic potential.
Further reconnaissance exploration is also required to follow up on other copper and gold anomalies that occur between two targets within La Union.
Questcorp Mining is a Canadian mineral explorer focused on acquiring and discovering mineral properties on Vancouver Island, British Columbia.
Write to Aaliyah Rogan at Mining.com.au
Images: Questcorp Mining
