November 26, 2019. Tocvan Ventures Corp (TOC:CSE) is pleased to announce the company has completed all necessary due diligence and has finalized their option agreement dated September 22nd with Colibri Resource Corp.
The agreement allows Tocvan to acquire up to 100% interest in the Pilar project located in Sonora Mexico. The Pilar project is located within the historic Sonora gold district within the Sierra Madre Occidental geological province, host to epithermal gold-silver and porphyry copper deposits. Pilar is accessible by road and is geographically located 140km south-east of the city of Hermosillo.
Under the terms of the agreement Tocvan has now advanced the first year’s cash payment of $125,000 to Colibri and issued 2,000,000 common shares of Tocvan to Colibri Resource corp. Under the terms of the agreement Tocvan must now complete $2,000,000 of exploration on the property over five years, advance Colibri an additional $275,000 over the 5-year period with $50,000 due on the 1st anniversary date of the agreement and $75,000 due on the 3rd, 4th and 5th anniversary dates. Tocvan will also issue an additional 1,000,000 shares of the corporation to Colibri on the 3rd, 4th and 5th anniversary dates.
Once the above is satisfied Tocvan will have earned a 51% interest in the property and have the option to acquire the additional 49% interest by making a further $2,000,000 payment to Colibri Resource Corp. within in 6 months of fulfilling the obligations listed above.
During the due diligence period management analyzed all available data collected to date, met with former exploration managers, completed a detailed search of tenure on concessions, and conducted a thorough site visit. Management now believe firmly that the Pilar property represents tremendous potential for a proven economic resource in the short term and the host the potential for a multimillionounce discovery.
Mark Smethurst, a Director of Tocvan, commented:
“This is one of the more exciting properties I’ve come across in my career. The Pilar property has the right features and system to allow for great potential in defining a multimillion-ounce property.”