(TheNewswire)
Calgary, Alberta - TheNewswire- September 15,2021 - Tocvan Ventures (C NSX : TOC . CN) ( OTC : TCVNF ) ( WKN: TV3/A2PE64), is pleased to announce the company has completedtheir due diligence process and completed and executed the finalagreement to acquire Millrock Resources’ option to acquire up to100% interest in the El Picacho mining concessions located in thestate of Sonora, Mexico.
The Project is located 140 kilometers north ofHermosillo in Sonora, Mexico and is fully accessible by road.Extensive surface exploration has been conducted historically definingfive gold targets on the project. Millrock and Tocvan believe thesetargets will be ready for drill testing with surface confirmation viatrenching. A permit is currently active to allow for trenching anddrilling on the Project.
About El Picacho
Location and Infrastructure
-
- Total Area: 2,413.7 ha
- Road accessible, 140 kmnorth-northwest of Hermosillo
- Excellent Road access. Railroadon eastern edge of Project
- 18 km southwest of SanFrancisco Mine.
Historic Work Summary
-
- Five Orogenic Gold TargetsDefined: San Ramon, Tortuga, El Peurto, La Cornea, and El Jabali (seeFigure 2)
- 2,650 rock samplescollected
- Regional Scale mappingcompleted
- 3,548 soil samples collected,covering Project Area
- 70% of area covered by groundmagnetic survey
- 17.8 line-km of IPsurveys
- Limited drilling completed,widely spaced
- Fully permitted for drillingand trenching
Derek Wood CEO ofTocvan Ventures Commented “We are very please to have negotiated and completed this agreementwith Millrock. This is a prime example of the ability of Tocvan tonegotiate transactions which we believe add significant accretivevalue to Tocvan shareholders, while allowing previous operators andlandowners to benefit greatly from a successful outcome as Tocvanworks to de-risk the property toward economic viability. We like tocreate win-win opportunities for all stake holders and feel that wehave accomplished this with execution of this agreement.”
Terms of Option Agreement
Tocvan must make cash payments of $1,989,600 USD to the underlyingconcession owners (the Suarez brothers) over a five-year term toacquire 100% interest in the project.
Terms of AssignmentAgreement
In the event that Tocvan exercises its option to purchase a 100%interest from the Suarez brothers, Millrock will vest with a 2% NSRroyalty. Tocvan may purchase back 1% for US$1.0 million. The royaltycontains a provision for an Annual Advance Minimum Royalty(“AMR”). The initial AMR payment to Millrock would be US$25,000.The amount of the AMR will double each year until commercialproduction occurs. Any AMR payments made can be deducted from NSRroyalty payments.
Figure 1. Location of El Picacho Project within the Caborca OrogenicGold Belt
Figure 2. PlanView Map of Target Areas at El Picacho.
Qualified Person
Brodie A. Sutherland, P.Geo., VP Exploration forTocvan Ventures Corp. and a qualified person ("QP") asdefined by Canadian National Instrument 43- 101, has reviewed andapproved the technical information contained in this release.
About Tocvan VenturesCorp .
Tocvan is a well-structured exploration developmentcompany. Tocvan was created in order to take advantage of theprolonged downturn the junior mining exploration sector, byidentifying and negotiating interest in opportunities where managementfeels they can build upon previous success. Tocvan currently hasapproximately 29 million shares outstanding and is earning into threeexciting opportunities. The Pilar Gold-Silver project and the ElPicacho Property within the Caborca OrogenicGold Belt both located in Sonor a and the RogersCreek Copper project in southern British Columbia, management feelsall three projects represent tremendous opportunity to create longterm shareholder value.
ON BEHALF OF THE BOARD
Derek Wood President & CEO
Dwood@tocvan.ca
Phone: 403-668-7855
Copyright (c) 2021 TheNewswire - All rights reserved.