Prime Mining Corp. (“Prime” or the “Company”)(TSX-V: PRYM, OTCQB: PRMNF, Frankfurt: A2PRDW) has made payment of $1.1 million to Vista Gold Corp. (“Vista”) as per the terms of the acquisition of the Los Reyes Gold-Silver Project, located in the State of Sinaloa, Mexico.
As disclosed on June 15, 2020 (see news release), Prime agreed to pay Vista $2.1 million in lieu of being granted certain royalties and back-in rights relating to the project. The remaining $1.0 million payment is due during July 2021. If Prime fails to make the remaining payment, Vista will have the right to reinstate its royalties and back-in rights.
All dollar amounts are United States dollars.
Prime is an ideal mix of successful capital markets and mining executives and experienced local exploration personnel who are expanding the exploration initiative at the historically productive Los Reyes gold and silver project in Sinaloa, Mexico. Current Measured and Indicated pit-constrained oxide mineral resources for the Property include 19.8 million tonnes containing 633,000 ounces of gold at 1.0 g/t and 16,604,000 ounces of silver at 26.2 g/t. Los Reyes holds substantial resource upside based on open extensions of known resources, ten kilometres of undrilled strike length and at least eight additional exploration targets. Prime Mining has a well-planned capital structure with significant management and insider ownership.