ePower Metals wants to acquire historic Mexican gold mine

ePower Metals (TSXV: EPWR) announced that it has entered into a binding letter of intent with Minera Alamos for the assignment of the option to earn a 100% interest in the Los Reyes gold project located in the northwestern state of Sinaloa, Mexico.

In a press release, the Vancouver-based miner explained that the LOI stipulates a 30 day period to enter into a definitive agreement.

At present, Minera Alamos (TSXV: MAI) has the right to acquire a 100% interest in Los Reyes, pursuant to an option agreement entered into with Vista Gold Corp.

If the transaction goes through, ePower says it will change its name to "Prime Mining Corp.", and will focus its resources on the immediate development of Los Reyes.

Previously known as Guadalupe de los Reyes, the underground mine opened in the late 1800s.

"Los Reyes is an exceptional opportunity for exploration and potential development, to be fast-tracked through a PEA and a construction decision with low capital expenditure and reduced technical risks," Andrew Bowering ePower's incoming CEO, said in the media brief. "The company will work to complete a PEA technical study on the project while continuing to drill to expand existing data as well as promising new targets."

To acquire Minera Alamos' interest in Los Reyes, ePower must make a cash payment of $1.5 million and assume Alamos' remaining option payments of $3 million; issue 9,450,000 post-consolidation common shares and 3,350,000 common share purchase warrants entitling Minera Alamos to acquire further post-consolidation common shares; enter into a governance agreement, among other conditions.

Located 43 kilometres southeast of the mining centre of Cosala, Los Reyes has a mining history that stretches back into the 1700s and has seen mining activity as recently as the 1980s.

According to ePower, recent development work has focused on conventional milling and carbon in leach extraction of gold and silver.

Previously known as Guadalupe de los Reyes, the underground mine opened in the late 1800s and to date is the most significant source of gold production in the district. It is estimated to have produced 500-600K oz of gold and 40M oz of silver at reported grades of +10 g/t Au and +500 g/t Ag.

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Vancouver’s ePower Metals buys Magenta cobalt project in Mexico

ePower Metals (TSXV: EPWR) announced it has entered into a definitive agreement to buy Exploracion Auramex S.A. de C.V. and its Magenta cobalt project from Bowering Projects for $150,000 and 2,500,000 common shares.

In a press release, ePower Metals explained that the Magenta project is located in Sinaloa, northwestern Mexico, and consists of five claims totaling 2,274 hectares. The claims are on privately owned ranch land and four of them are in good standing while one, the Magenta #2, is under appeal of cancelation.

None of the claims, however, is subject to royalties.

According to ePower, Magenta hosts numerous high-grade cobalt/gold/silver/nickel vein and skarn style deposits. The miner reports that the La Prieta showing has seen the most development with two adits and one trench and several drill holes.

“Historic sampling by Nordic Gold at La Prieta returned results of 5.54% Co, 5.8 oz/T Au, and 6.5 oz/T Ag, over 0.61 m in Zone #1; and 3.27% Co, 0.26 oz/T Au, and 1.7 oz/T Ag, over 0.5 m in Zone #2. Cobalt mineralization was traced for 325m along strike of Zone #1,” the media brief reads.

ePower Metals also conducted sampling in Zone 2 and obtained results of 0.39% Co, 0.42 oz/T Au, 2.0 oz/T Ag and 0.36% Ni, over 1.6m and 4.52% Co, 1.49 oz/T Au, 6.08 oz/T Ag and 2.80% Ni in a grab sample in a different horizon.

“The mineralized system is quite extensive, but it is poorly understood. The company believes there is great potential for expansion and definition of a meaningful cobalt/precious metals resource and we look forward to getting to work on Magenta,” Michael Collins, President and CEO of ePower Metals, said in the media statement.

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