Vancouver (pcJ News Briefs) – Prospero Silver Corp. (TSX-V: PSL) has secured a $1.5 million strategic investment from Fortuna Silver Mines Inc. (TSX: FVI; NYSE: FSM) by way of non-brokered private placement of 5,357,142 units at $0.28 per unit.
Each unit is comprised of one common share and one warrant entitling Fortuna to acquire one additional Prospero common share at $0.35 for a period of 36 months.
Prospero will allocate $1.2 million to drill testing selected projects and $300k will be allocated towards Prospero’s generative efforts in Mexico.
Fortuna will have the right to select one of the projects within 18 months from signing of the definitive agreement to joint venture with Prospero, potentially earning in to a 70% interest by spending US $8 million over 6 years and completing a Preliminary Economic Analysis on the selected property.
“I’m delighted to welcome Fortuna as our strategic partner in Mexico and we look forward to working with their exploration team in the next 18 months. Fortuna’s team are experienced mine builders who have placed 2 mines into production; Caylloma in Peru and San Jose in Mexico. They are currently working on their third development project in Argentina. Their investment gives Prospero the additional funding we need to begin drill testing our portfolio of epithermal precious metals targets and to expand our generative efforts in Mexico. We intend to begin drill testing at our Petate, Matorral and Pachuca SE projects as rapidly as possible,” commented Tawn Albinson, President of Prospero.
photo credit: Prospero Silver