Sourced: Shutterstock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Tesoro Resources (TSO) has successfully negotiated for its Chilean subsidiary to increase its ownership of the El Zorro Gold Project in Chile
  • Subject to shareholder approval and a US$50,000 payment, the company’s interest in El Zorro will increase from 51 to 70 per cent
  • This payment was originally due by January next year, however Tesoro is committed to unlocking the value of the project
  • Recently, results from a drilling program have uncovered a large, high-grade gold system at El Zorro
  • This year, Tesoro hopes to release a maiden gold resource for the project
  • Tesoro is down 10 per cent and shares are trading for 2.7 cents each

Tesoro Resources (TSO) has successfully negotiated for its Chilean subsidiary to increase its ownership of the El Zorro Gold Project from 51 to 70 per cent.

Tesoro first entered into a purchase option agreement to acquire the El Zorro Gold Project on July 17 2017.

Exactly six months after entering this agreement, Tesoro gained a 10 per cent interest in El Zorro after paying US$100,000. On October 1 2018, the subsidiary paid $50,000 which led it to earn its current 51 per cent interest.

Without this agreement, the company would wait until its third payment in January 2021 to earn a 70 per cent interest in the project.

“We are pleased to have negotiated the accelerated increase in ownership of El Zorro to 70% without the requirement of meeting any further expenditure commitments,” Managing Director Zeff Reeves said.

For this acceleration to go ahead, the company will need to make its third payment of US$50,000 upon signing this agreement and issuing 5 million ordinary shares in the company to its joint venture partner (subject to shareholder approval).

The shares will be subject to ASX escrow until February 5 2022, being 24 months from the date of the company’s re-listing on ASX.

“We are excited at the emerging gold system at El Zorro and the Tesoro team is committed to delivering a maiden gold resource at the Project during 2020,” Zeff added.

Since re-listing, Tesoro launched a drilling program which outlined a large gold system with all holes intersecting gold mineralisation.

Tesoro is down 10 per cent and shares are trading for 2.7 cents each at 12:47 pm AEDT.

TSO by the numbers
More From The Market Herald
The Market Herald Video

" Woomera Mining (ASX:WML) appoints Jason Livingstone as new Managing Director

Mineral explorer Woomera Mining (ASX:WML) has appointed Jason Livingstone as its new Managing Director, effective from…
The Market Herald Video

" Stanmore Resources (ASX:SMR) gains full ownership of SMC, posts record EBITDA

Stanmore Resources' (ASX:SMR) subsidiary Dampier Coal has signed a share sale agreement with Mitsui to acquire…
The Market Herald Video

" Calidus Resources (ASX:CAI) eyes $20m to accelerate lithium & gold exploration

Calidus Resources (ASX:CAI) has received firm commitments to raise $20 million via a share placement.
The Market Herald Video

" Elmore (ASX: ELE) enters offtake agreement for newly-acquired Peko project

Elmore (ELE) subsidiary Peko has struck an ore sales agreement with Hong Kong-based Royal Advance to ship high-iron concentrate magnetite product to China.