Tocvan Ventures (TOC.C) confirmed it has submitted the notice of exercise to Colibri Resources (CBI.V) to obtain the majority stake (51%) in the Pilar gold-silver project in Mexico’s Sonora state. Tocvan still has the option to acquire the remaining 49% of the project by meeting certain requirements, but as Colibri recently appointed a new CEO, perhaps there is some wiggle room as the current agreement requires Tocvan to make a C$2M cash payment and grant Colibri a 2% Net Smelter Royalty on the Pilar project. Half of that NSR could be repurchased by Tocvan for C$1M.
By formally exercising the option to establish the initial 51% stake, Tocvan is definitely interested in moving the project forward (which was already clear when the company announced its plans to add the massive land position around Pilar to the project). The due diligence stage for the land expansion acquisition is now complete and Tocvan aims to have a definitive agreement in place sometime in the next few weeks.
Meanwhile, Tocvan is getting ready to kick off a new drill program. The plan is to complete 2,000 meters of drilling on the Pilar + Expansion zones and the results of that program could set the scene for an even larger drill program in 2024 (subject to having sufficient cash, of course). Hopefully the 2023 and 2024 drill program will allow Tocvan to start working on a maiden resource calculation.
Disclosure: The author has a long position in Tocvan Ventures. Tocvan is a sponsor of the website. Please read the disclaimer.
