Starcore International Mines signs LOI to lease Tortilla Project, Mexico
Through its wholly owned Mexican subsidiary, Compania Minera Pena de Bernal, Starcore International Mines Ltd. [TSX: SAM] entered into a non-binding letter of intent with Manuel Felipe Arreguin Martinez (the owner) to lease the owner’s six mineral claims and two properties comprising what is commonly known as the San Juan Nepomuceno project (the Tortilla Project), located in Queretaro, Mexico.
The Tortilla project includes a historical mine situated 150 km from the capital, Santiago de Queretaro, 40 km northeast of the San Martin mining unit and five km west of the La Negra mine. Mining activity in the area dates back to 1557 with records of continuous operation until 1870 under Spanish control. During this period, the deposit was known as El Doctor mine. Toward the end of the 19th century, a British company, O.J. Braniff, resumed exploration activities and installed a processing plant to process minerals from the San Juan Nepomuceno and Santo Entierro mines. However, operations only lasted two years. There are no historical production records.
In consideration of the lease agreement for 10 years covering the Tortilla project, Starcore must pay the owner an aggregate of five million Mexican pesos (approximately US$268,500) as follows: Two million Mexican pesos (approximately US$107,500) upon signing a definitive agreement by July 24, 2025, or as extended by mutual agreement and 500,000 Mexican pesos (approximately US27,000) monthly for the next six months, commencing the month after the signing of the definitive agreement.
After all payments have been made, the owner shall be entitled to a 2% net smelter return royalty from mineral production derived from the Tortilla project.
During the term of the 10-year lease, the owner has the option to sell all of the claims and concessions to Starcore at a purchase price of US$7 million.
“Although there are no historical production records, based on the size of the old mine sites and average ore grades, we believe we have an excellent opportunity to capitalize on the untapped potential of the Tortilla project and the attractive price of silver, which has been steadily increasing for years,” said Robert Eadie, president and CEO of Starcore. “Our exposure is minimal, and the possibilities could be extremely rewarding.”