- Questcorp Mining (QQCMF, Financial) signs a definitive option agreement to acquire 100% interest in La Union Project, Sonora, Mexico.
- Key terms include CAD $100,000 cash payments, issuing 19.9% of shares, and CAD $5.5 million in exploration expenses over four years.
- Riverside Resources will operate the project and receive a 2.5% net smelter returns royalty upon commercial production.
Questcorp Mining Inc. (QQCMF) has signed an option agreement to acquire full interest in the La Union carbonate replacement project in Sonora, Mexico. The 2,520.2-hectare property has demonstrated promising exploration results, showcasing high-grade mineral content, including 59.4 grams per metric tonne (g/t) gold, 833 g/t silver, 11% zinc, 5.5% lead, and 2.2% copper.
To secure 100% ownership, Questcorp must execute cash payments totaling CAD $100,000, issue 19.9% of the company's shares, and invest CAD $5.5 million in exploration over the next four years. Riverside Resources will continue as the project operator, maintaining its local team in Hermosillo, Sonora, and will receive a 2.5% net smelter returns royalty when the site reaches commercial production.
The La Union Project identifies five mineralization zones: Union, La Union Norte, El Cobre, El Creston, and La Famosa. The technical report suggests a two-phase exploration program involving detailed mapping, sampling, and drilling to test the zones' economic potential.
