Tocvan Ventures (TOC.C) confirmed it has submitted an exercise notice to Colibri Resources (CBI.V) to acquire a controlling stake (51%) in the Pilar gold-silver project in Sonora, Mexico. Tocvan still has the option to acquire the remaining 49% stake in the project if certain conditions are met. However, with Colibri recently appointing a new CEO, Tocvan’s current agreement calls for a cash payment and a C$2 million grant, so there may be some wiggle room. Colibri will receive a 2% net smelter royalty on the Pilar project. Tocvan can repurchase half of this NSR for C$1 million.
By formally exercising the option to establish an initial 51% stake, Tocvan is certainly interested in moving forward with the project (this was made clear when the company announced plans to incorporate large tracts of land around Pilar into the project). The due diligence phase of the acquisition of the property expansion has now been completed and Tocvan intends to enter into a final agreement in the coming weeks.
Meanwhile, Tocvan is preparing to launch a new drilling program. The plan is to drill over 2,000 meters in the Pilar + Expansion zone, the results of which could provide the basis for a larger drilling program in 2024 (provided, of course, that sufficient funding is available). It is hoped that a drilling program in 2023 and 2024 will allow Tocvan to begin an initial resource calculation.
Disclosure: The author has a long position in Tocvan Ventures. Tocvan is a sponsor of the website. Please read the disclaimer.
