TORONTO, May 6, 2020 /CNW/ - Xtierra Inc. (TSXV:
XAG) ("Xtierra" or the "Company") signed a
binding agreement on April 22, 2020
which was approved by the Board of Directors on April 28, 2020 to acquire 87.99% of Minera
Portree De Zacatecas, S.A. de C.V, ("Portree"), a Canadian-owned
Mexican corporation founded and operating in Mexico since 1989 for CDN$56,000 in cash less a deposit of CDN$26,000 previously paid, the remaining
CDN$30,000 is payable in installments
subject to certain milestones and the issue to the vendor of
2,000,000 common shares of the Company at a deemed value of
CDN$0.05 per share. The TSX Venture
Exchange ("TSXV") has provided conditional approval of the
acquisition which requires completion of legal documentation in
Mexico.
Portree holds various legal or royalty interests in certain
mineral properties in Mexico,
including the Company's Bilbao
property and an asserted claim to a 2% net smelter royalty on
six mining concessions located adjacent to the Cozamin Mine
in Zacatecas operated by Capstone
Mining Corp. (TSX:CS), five of which were acquired by Capstone from
a third party in 2017 and 2019. The third-party had acquired the
six mining concessions from Portree in 2002, subject to a 2% net
smelter royalty retained by Portree. The entitlement of
Portree to the royalty may be contested by the third party and/or
Capstone.
The TSXV has also provided conditional approval to a Standstill
and Support Extension Amendment Agreement dated April 30, 2020 (Original Agreement dated
January 17, 2018 and amended on
February 07, 2020) between a
non-arm's length lender, Buchans Resources Limited and the Company,
whereby the Company will defer repayment of principal and accrued
interest, and suspend further interest accruals, for a term ending
April 30, 2021. Additionally,
the TSXV has conditionally accepted for filing the issuance of
13,000,000 non-transferable bonus warrants to the Lender in
connection with the extension amendment exercisable at $0.05 per share until April 30, 2021. The total indebtedness is
USD$796,477.
About Xtierra Inc.
Xtierra is a natural resource company with precious and base
metal deposits on its mineral properties located in the Central
Silver Belt of Mexico in the
State of Zacatecas and is pursuing
new opportunities including identifying and evaluating new
potential royalty acquisitions.
Bilbao Silver, Lead, Zinc Property - Mexico
Xtierra, through its Mexican subsidiaries, currently holds a
100% interest, subject to a 1.5% net smelter royalty, repurchased
in July 2019 (see Press Release
July 22, 2019 Xtierra acquires
1.5% net smelter royalty on Bilbao), on the Bilbao silver-lead-zinc-copper project located
approximately 500km northwest of Mexico
City in the southeastern part of the State of Zacatecas.
For further information contact Xtierra Inc.
at info@xtierra.ca
SOURCE Xtierra Inc.
