Capitan Silver to Acquire Concessions From Fresnillo

Capitan Silver entered into a Letter of Intent (LOI) to acquire seven mineral concessions from leading silver producer Fresnillo in Durango. The concessions are located next to the company’s Cruz de Plata project. The seven concessions Capitan Silver intends to acquire total 2,171.4ha, and are located immediately adjacent to and surrounding Capitan Silver’s Cruz de Plata silver-gold project.

Capitan Silver noted the total price for the transaction is US$4 million, payable in two installments. The first US$2 million is payable upon the execution of a definitive agreement, and the second US$2 million is due on or before the second anniversary of the closing. The deal involves no royalties or share payments. Closing is subject to technical and legal due diligence by Capitan Silver and corporate due diligence by Fresnillo, with a definitive agreement targeted within 90 days.

The acquisition will increase Capitan Silver's total land position in the district by approximately 85% and expand the known surface expression of the project's silver-gold trend from 2.5km to 3.7km. The company stated that the land package consolidation allows for additional ground for potential infrastructure development and project design optimization. “By consolidating ownership of this highly prospective corridor, we not only expand our exploration footprint by 85%, but also unlock significant development potential with continuity across the district. This transaction positions the company strongly for the next growth phase through further exploration at the Cruz de Plata project,” said Alberto Orozco, President and CEO, Capitan Silver.