The TSX Venture Exchange has accepted for filing documentation pertaining to a share purchase agreement dated March 5, 2020, as amended on April 24, 2020, between the company and Timmins GoldCorp Mexico S.A. de C.V., a wholly owned subsidiary of Alio Gold Inc., to acquire the San Francisco mine, located in Sonora, Mexico, through the acquisition of Molimentales del Noroeste S.A. de C.V. (the target), a wholly owned subsidiary of Timmins.

Under the terms of the agreement, the company has agreed to acquire the target by issuing up to 9.74 million common shares on closing and paying an aggregate of $5-million (U.S.) within 12 months from closing of the acquisition. The company may elect to cause the target to grant Timmins a 1-per-cent net smelter return royalty on a portion of the property in lieu of the cash consideration.

Additionally, the exchange has accepted for filing documentation pertaining to a letter of intent between the company and Peal de Mexico S.A. de C.V., dated April 6, 2020, as amended on May 1, 2020, and the acknowledgment of debt and payment agreement dated June 29, 2020, between the target and Peal, whereby the arbitration procedure between the target and Peal is settled for the following consideration: (i) the issuance of 11 million common shares at deemed price of 35 cents per share; and (ii) the payment of $3,495,130.18 (U.S.) plus value-added tax in cash within a period of 18 months from execution of the settlement agreement.

The company has also agreed to remunerate Medalist Capital Ltd. and Trinity Advisors Corp. for their advisory services in connection with acquisition by paying the aggregate of $240,000 in cash and issuing 1.03 million shares at deemed price of 40 cents per share.

For more information, please refer to the company's news releases dated March 6, 2020, April 24, 2020, May 6, 2020, June 22, 2020, and June 30, 2020.