Vancouver, BC - Goldplay Exploration Ltd. (TSXV: GPLY, FRANKFURT: GPE, OTCQB: GLYXF) (“Goldplay” or the “Company”), is pleased to announce that it has entered into a Letter of Intent (“LOI”) with Mako Mining Corp. (“Mako”), the sole shareholder of Marlin Gold Mining Ltd. (“Marlin”), pursuant to which it was granted the right to acquire 100% of the shares of Marlin (the “Marlin Shares”). Marlin is a private British Columbia company, 100% controlled by Mako. Marlin owns, amongst other assets, Oro Gold de Mexico, S.A. de C.V. (“Oro Gold”), a Mexican company that owns the La Trinidad mine facilities (“La Trinidad”), currently being decommissioned (Figure 1). Oro Gold also controls 100% of nine concessions (the “Concessions”) totaling 104,094.5 ha located adjacent to Goldplay’s existing portfolio in the historic Rosario gold-silver Mining District, Sinaloa, Mexico (Figure 2).
Under the LOI, Goldplay was granted the exclusive right to acquire 100% of the Marlin Shares until December 31, 2020. Goldplay is now moving forward with its legal, financial and technical due diligence review of Marlin, Oro Gold, La Trinidad and other assets owned by Marlin. Upon completion of due diligence, if Goldplay is satisfied with same, the parties expect to then negotiate the terms of a definitive agreement in relation to this acquisition. The Company will provide shareholders with updates on the status of this transaction when material information becomes available.
The terms of the transaction are subject to negotiation and will include a nominal cash payment to Mako and the issuance of a small NSR royalty to Mako on the Concessions currently owned by Oro Gold. Goldplay will assume all remaining tax liabilities of Oro Gold. Mako will be responsible for reclamation activities at La Trinidad and associated costs until it receives approval from the Mexican government that reclamation is complete. All proceeds from the lawsuit Mako and Oro Gold have filed against their insurers and reinsurers related to damages from Hurricane Willa will be for the benefit of Mako, and Mako will be responsible for the costs of this litigation.
Goldplay President and CEO Marcio Fonseca commented, “We are pleased to enter into the Letter of Intent with Mako, as it opens up the opportunity to fully review and potentially acquire highly prospective gold and silver assets adjacent to the San Marcial Project, including on-site infrastructure. If successful, the transaction would prove to be an important advancement toward our goal of becoming a leading company in control of key assets in this district. Goldplay’s team has extensive experience in the Rosario gold-silver Mining District. With over 10 years of on-the-ground exploration, the team has acquired fundamental knowledge of the geological setting of the district. This proprietary intelligence contributes to maximizing value from this proposed acquisition and supports our goal of delivering significant shareholder value through new discoveries.”
Oro Gold acquired the Nueva Trinidad property from Minera Camargo S.A. de C.V. in 2005 and subsequently commenced drilling and regional exploration. The property had been previously owned and operated by a subsidiary of Eldorado Gold Corp (“Eldorado”). Based on Eldorado’s annual reports, production from the Taunus Pit commenced in 1996 and ended in the fall of 1998.
A second zone, below what was mined by Eldorado, was discovered by Marlin in 2009 and is located approximately 30 m below the Eldorado zone or approximately 150 m below surface. The discovery of this deeper zone was the basis for the NI 43-101 preliminary economic assessment that Marlin filed on SEDAR on June 11, 2012.
In 2014, Marlin achieved commercial production of a heap leach open pit operation at Nueva Trinidad, one of the highest-grade open pit heap leach gold mines in Mexico. While Marlin focused primarily on advancing production at the Taunus Pit, today the remainder of the Nueva Trinidad land package and surrounding area remains under-explored.
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Figure 1: General View of the La Trinidad Mine and Surroundings