VANCOUVER, Jan. 7, 2020 /CNW/ - Goldplay Exploration Ltd.
(TSXV: GPLY, FRANKFURT: GPE,
OTCQB: GLYXF) ("Goldplay" or the "Company"), is pleased to
announce that it has entered into a non-binding Letter of Intent
("LOI") with First Majestic Silver Corp. (NYSE: AG, TSX: FR,
FRANKFURT: FMV) ("First Majestic"), pursuant to which it
proposes, through a wholly owned Mexican subsidiary, to acquire
100% of the issued and outstanding shares of First Majestic's
wholly owned Mexican subsidiary, Minera La Rastra S.A. de C.V.
("Minera La Rastra"). Minera La Rastra owns the past
producing Plomosas Silver Project, including 8,514 ha of
concessions with significant exploration potential in Sinaloa, Mexico ("Plomosas Project"),
(Figure 1).
The definitive terms of the transaction are subject to
negotiation and are expected to include: (i) a $100,000 cash payment to First Majestic; (ii) the
grant of a 2% net smelter return (NSR) royalty to First Majestic on
the Plomosas Project with half of the NSR (i.e., 1% NSR) being
subject to a buy-back option for US$1,000,000; and (iii) the issuance to First
Majestic of that number of common shares of Goldplay as is equal to
19.9% of the total issued common shares of Goldplay (calculated
after giving effect to the issuance of such shares)(the
"Purchase Shares"). It is anticipated that the Purchase
Shares will be subject to a voluntary hold period such that 1/8th
of the total number of Purchase Shares will be released from such
voluntary hold period every 3 months after the date of closing. It
is also expected that First Majestic will enter into a voting trust
agreement with Goldplay pursuant to which it will agree to vote the
Purchase Shares in favour of management's recommendations on
routine matters at any annual general or special meeting of
shareholders for a period of two years after the closing. It is
also a binding term of the LOI that, for a period of two years from
the date of signing of the LOI, First Majestic will not, without
the prior written consent of Goldplay, acquire such number of
common shares of Goldplay that would result in it owning 20% or
more of the issued shares of Goldplay at any time during such
period.
Under the LOI, the parties have agreed to a binding exclusivity
and non-solicitation period which will terminate on the earlier of
60 days from the date of signing of the LOI, the date of execution
of a definitive agreement or the termination of the LOI. The
parties are now moving forward with their respective due diligence
reviews of each other during the 60 day period. The entering into
of a definitive agreement will be subject to certain conditions
such as each party being satisfied with its due diligence of the
other, board approvals, any required governmental, regulatory and
third party approvals and no material adverse event or change in
respect of Minera La Rastra or Goldplay.
Goldplay's CEO, Marcio Fonseca
stated, "We are delighted to continue toward our corporate
mission of becoming the first company ever to consolidate key
assets in the Rosario Mining District. Goldplay is poised to secure
an attractive resource stage expansion portfolio with excellent
infrastructure for future project development. The extensive
exploration data base combined with historical operational data,
provide a wealth of technical information (geology, geochemistry,
geophysics, drilling, Landsat/structural studies, historical
metallurgical and operational data) on the Plomosas Project. The
value of the extensive exploration database and potential upside of
this asset cannot be understated, as it provides an opportunity for
Goldplay to achieve new discoveries and delineate new resources in
the Plomosas Project. Goldplay is focused on acquiring, at low
cost, assets with good infrastructure and potential resources
requiring a minimum of time and money to expand and advance to
development. Our recent success expanding the resource
at the San Marcial Silver-Gold Project has brought fundamental
knowledge of the silver and gold mineralization in the Rosario
Mining District. This knowledge will allow Goldplay to implement a
cost-effective exploration program at the Plomosas Project in 2020
with the objective of future discoveries and resource
delineation."
The 8,514-ha land position of the Plomosas Project is
strategically located within 5 km of Goldplay's San Marcial
Silver-Gold Project. It is located approximately 94 kilometres
southeast of Mazatlan in southeast
Sinaloa State, Mexico and is
adjacent to the town of Rosario
(Figure 1). The Plomosas Project includes infrastructure such as: a
60 km - 33 KV power line (connected to Mexican Regional Power
grid), offices, shops, 120-man camp, infirmary, warehouses,
foundations for processing plant, and other key infrastructure
which can be fundamental for future project development (click here
to view photos). The Plomosas Project also is entitled to a surface
rights agreement, water use and surface exploration permits.
The Plomosas Project includes five shallow past producing
underground mines - the Plomosas-La Cruz mine, San Juan mine, La
Colorada mine, El Huarache mine, El Saltito mine - and 11
exploration targets (Figure 2). Grupo Mexico operated a 600 tpd
crusher/mill/flotation processing circuit from 1986 until 2001. The
processing plant feed was mainly sourced from the Plomosas-La Cruz
historical underground mine, producing zinc and lead concentrates
with silver-gold credits. Historic production reports by Grupo
Mexico indicate that a total of 2.5 million tonnes of ore were
extracted which averaged 190.5 grams per tonne (g/t) silver, 0.92
g/t gold, 2.02% zinc and 2.38% lead.
The Plomosas Project is historically known as a highly
prospective area for silver, gold, lead and zinc mineralization.
Key areas within the property boundaries of the Plomosas Project
display many geological similarities with the San Marcial
Silver-Gold Project. The geological settings at both projects
demonstrate occurrences of low sulphidation epithermal
quartz-galena-sphalerite veins/hydrothermal breccias and stockworks
hosting high grade silver and gold mineralization. The (already
discovered) mineralized trends indicate a geological setting
related to at least seven major regional structures hosting not
only mineralization at the San Marcial Silver-Gold Project but also
at the Plomosas Project (Figure 3).
This announcement marks the second strategic LOI signed by the
Company in the past three weeks. The news release dated
December 17, 2019 announced the
signing of an LOI with Mako Mining Corp. ("Mako") which
granted the Company the exclusive right to acquire 100% of the
issued shares of Mako's wholly owned subsidiary, Marlin Gold Mining
Ltd. ("Marlin"), until December 20,
2020. Marlin owns, amongst other assets, Oro Gold de
Mexico, S.A. de C.V., a Mexican
company that owns the La Trinidad
gold mine facilities, currently being decommissioned.
Goldplay will provide shareholders with updates on the status of
these transactions when material information becomes available.
Goldplay has applied to the TSX Venture Exchange to change
its name to reflect its focus on silver in the Rosario Mining
District. The Company believes its proposed new name will
reflect its evolution, the consolidation of advanced-stage assets
in the Rosario Mining District, Sinaloa. More details on the
name change will be provided as soon as confirmation of its
acceptability is received from the TSX Venture Exchange.
Qualified Person
The scientific and technical data contained in this news release
was reviewed and/or prepared under the supervision of Marcio Fonseca, P.Geo., a non-independent
qualified person to Goldplay Exploration Ltd. who is responsible to
ensure that the geological information contained in this news
release is accurate and who acts as "qualified person" under the
National Instrument 43-101 Standards of Disclosure of Mineral
Projects.
About Goldplay Exploration Ltd.
Goldplay has successfully consolidated a district-sized
portfolio, owning >250 sq. km of mineral concessions in the
historic Rosario gold-silver
Mining District in the state of Sinaloa,
Mexico. Its flagship project, San Marcial, consists of a
1,250-ha land package located south of the La Rastra and Plomosas historic mines. San
Marcial is a near-surface, high-grade silver, lead, and zinc open
pit amenable project for which a NI 43-101 resource estimate was
completed by Goldplay in early 2019. Additionally, high-grade gold
was drilled in July 2019 at San
Marcial, opening up the potential for further gold success.
Goldplay's 100% owned El Habal
precious metals project is located 20 km west of the San Marcial
Project. It comprises 3,700 hectares and is located 75 km southeast
of the modern coastal port of Mazatlán, and 10 km on a paved road
from the historic mining town of Rosario,
Sinaloa, Mexico.
Goldplay's current focus includes expanding its NI 43-101
resource estimate at the San Marcial project, which contains 36Moz
Ag Eq (indicated) + 11Moz Ag Eq (Inferred), by defining new
high-grade gold and silver targets along the project's 6 km
mineralized trend. Goldplay is the first company to perform
exploration work at San Marcial in over 10 years. It is a low-risk
development stage project, fully exploration permitted and
supported by the local communities to carry out all proposed
exploration activities. Only 500 m of
the 6 km trend has been drilled to date, highlighting the
significant potential for further discoveries. The Company has
identified 8 high-priority targets along the 6 km trend and is
currently drilling two high-priority targets at Faisanes and
Nava. Some of these exploration
targets consist of old shallow pits, caved shafts and historic
shallow underground workings in areas with extensive hydrothermal
alteration, hosted by major regional structures in a felsic
volcanic environment. Mapping and sampling by Goldplay have
revealed evidence of dacite-rhyolite dome structures in a highly
prospective geological environment for additional high-grade gold
and silver discoveries.
The El Habal Project is a drill-stage project. Its oxidized gold
mineralized zone outcrops along a series of rolling hills with
evidence of historic shallow underground mining along a 6 km-long
prospective corridor. The El Habal Project is located near the
historic gold-silver Rosario Mine which operated for over 250
years.
Goldplay's team has over 30 years of experience with senior
roles in exploration, financing, and development in the mining
industry, including over ten years of extensive exploration
experience in the Rosario Mining District, leading to previous
successful discoveries.
The NI 43-101 reports for each of the San Marcial and El Habal
Projects are available on SEDAR.
Disclaimer for Forward-Looking
Information
This press release contains
forward-looking statements and information that are based on the
beliefs of management and reflect the Company's current
expectations. When used in this press release, the words
"estimate", "project", "belief", "anticipate", "intend", "expect",
"plan", "predict", "may" or "should" and the negative of these
words or such variations thereon or comparable terminology are
intended to identify forward-looking statements and information.
Such statements and information reflect the current view of the
Company. Risks and uncertainties may cause actual results to differ
materially from those contemplated in those forward-looking
statements and information. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. READERS
SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION
AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE.
WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE
THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN
ACCORDANCE WITH APPLICABLE LAWS.
Mr. Marcio Fonseca
P. Geo, President & CEO
Goldplay Exploration
Ltd.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this press release.
SOURCE Goldplay Exploration Ltd