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Tocvan Ventures Corp
Symbol TOC
Shares Issued 28,441,496
Close 2021-09-14 C$ 1.09
Recent Sedar Documents

Tocvan finalizes El Picacho option acquisition

2021-09-15 06:30 ET - News Release

Mr. Derek Wood reports

TOCVAN FINALIZES AGREEMENT WITH MILLROCK RESOURCES FOR THE TRANSFER OF THE EL PICACHO AU-AG PROPERTY OPTION IN SONORA, MEXICO

Tocvan Ventures Corp. has completed its due diligence process and completed and executed the final agreement to acquire Millrock Resources' option to acquire up to 100-per-cent interest in the El Picacho mining concessions located in the state of Sonora, Mexico.

The project is located 140 kilometres north of Hermosillo in Sonora, Mexico, and is fully accessible by road. Extensive surface exploration has been conducted historically defining five gold targets on the project. Millrock and Tocvan believe these targets will be ready for drill testing with surface confirmation via trenching. A permit is currently active to allow for trenching and drilling on the project.

About El Picacho

Location and infrastructure:

  • Total area: 2,413.7 hectares;
  • Road accessible; 140 kilometres north-northwest of Hermosillo;
  • Excellent road access; railway on eastern edge of project;
  • 18 km southwest of San Francisco mine.

Historic work summary:

  • Five orogenic gold targets defined: San Ramon, Tortuga, El Peurto, La Cornea and El Jabali;
  • 2,650 rock samples collected;
  • Regional-scale mapping completed;
  • 3,548 soil samples collected, covering project area;
  • 70 per cent of area covered by ground magnetic survey;
  • 17.8 line km of IP (induced polarization) surveys;
  • Limited drilling completed, widely spaced;
  • Fully permitted for drilling and trenching.

Derek Wood, chief executive officer of Tocvan Ventures, commented: "We are very please[d] to have negotiated and completed this agreement with Millrock. This is a prime example of the ability of Tocvan to negotiate transactions, which we believe add significant accretive value to Tocvan shareholders, while allowing previous operators and landowners to benefit greatly from a successful outcome as Tocvan works to derisk the property toward economic viability. We like to create win-win opportunities for all stakeholders and feel that we have accomplished this with execution of this agreement."

Terms of option agreement

Tocvan must make cash payments of $1,989,600 (U.S.) to the underlying concession owners (the Suarez brothers) over a five-year term to acquire 100-per-cent interest in the project.

Terms of assignment agreement

In the event that Tocvan exercises its option to purchase a 100-per-cent interest from the Suarez brothers, Millrock will vest with a 2-per-cent NSR (net smelter return) royalty. Tocvan may purchase back 1 per cent for $1.0-million (U.S.). The royalty contains a provision for an annual advance minimum royalty (AMR). The initial AMR payment to Millrock would be $25,000 (U.S.). The amount of the AMR will double each year until commercial production occurs. Any AMR payments made can be deducted from NSR royalty payments.

Qualified person

Brodie A. Sutherland, PGeo, vice-president, exploration, for Tocvan Ventures and a qualified person (QP) as defined by Canadian National Instrument 43- 101, has reviewed and approved the technical information contained in this release.

About Tocvan Ventures Corp.

Tocvan is a well-structured exploration development company. Tocvan was created in order to take advantage of the prolonged downturn the junior mining exploration sector, by identifying and negotiating interest in opportunities where management feels it can build upon previous success. Tocvan currently has approximately 29 million shares outstanding and is earning into three exciting opportunities: the Pilar gold-silver project and the El Picacho property within the Caborca orogenic gold belt, both located in Sonora, and the Rogers Creek copper project in Southern British Columbia. Management feels all three projects represent tremendous opportunity to create long-term shareholder value.

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