Image credits: Wikimedia Commons: El Maviri Sinaloa
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News Article

Brigadier Newest Player in Booming Rosario District

By MBN Staff | Tue, 08/11/2020 - 08:17

Brigadier Gold Limited announced that it has signed a definitive agreement for an option to acquire a 100 percent interest in the Picachos gold and silver property in Sinaloa.

“Closing the Picachos acquisition marks our official entry into the Sierra Madre epithermal belt, which has seen tremendous drilling success from neighboring exploration companies. Brigadier is well funded, having closed US$4.2 million in financings over the last 30 days, and is preparing to initiate a maiden 5,000m drill program targeting the high-grade historic San Agustín mine. In addition to the high-grade San Agustín mine, Picachos offers exceptional exploration potential, with over 160 historic mines and workings throughout the property,” remarked Ranjeet Sundher, Brigadier’s CEO.

Brigadier describes itself as a company established to leverage the next major bull market in the natural resource sector, particularly in precious metals. The company’s mandate is to acquire undervalued and overlooked projects with demonstrable potential for advancement. Picachos is comprised of four mining concessions covering an area of 3,954ha in the southeastern region of Sinaloa. The project overlaps two regional-scale precious metal-rich vein systems and a large porphyry copper prospect, the company reported.

Brigadier explained that historic metal production is from the veins. The largest vein system trends northeasterly for 7km along a major fault zone. It hosts the past-producing San Agustin underground mine, which contains approximately 670m of historic underground development and has never been tested with diamond drilling.

Brigadier stated that to acquire a 100 percent interest in the property, it will provide staged consideration to the vendor over a 5-year period, consisting of cash payments totaling US$275,000, share issuances totaling 4 million common shares of Brigadier and cumulative exploration expenditures of US$3.85 million. Brigadier will also make payments to the vendor for Picachos development milestones. First, upon delineating a mineral resource estimate; second, upon completion of a feasibility study recommending the construction of a mine; third, upon commencement of commercial production.

In connection with the acquisition of Picachos, Brigadier reported that it intends to pay a finder’s fee of up to US$325,320, issuable in common shares at a deemed price per common share of US$0.30, for a total of up to 1,084,400 common shares to be issued in accordance with the policies of the TSX Venture Exchange. The acquisition and the finder’s fee are subject to approval by the TSX Venture Exchange.

 

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