San Marco Resources Inc.
TSX VENTURE : SMN

San Marco Resources Inc.

January 11, 2011 07:00 ET

San Marco Expands La Buena Gold Project in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 11, 2011) - San Marco Resources Inc. (TSX VENTURE:SMN) is pleased to announce it has signed an agreement with Golden Minerals Company (AUMN: NYSE Amex) (AUM: TSX) to acquire a 22 hectare concession adjacent to San Marco's wholly-owned La Buena gold-silver project in Mexico. The terms of the purchase are:

  • Payment of US$ 25,000;

  • Issuance of 100,000 shares upon receipt of TSX Venture Exchange approval; and

  • Sliding scale net smelter returns royalty of 1.5% - 2.5% depending on gold price between US$ 800 and US$ 950 per ounce.

The concession will be considered part of La Buena project acquired from Golden in January 2010 for the purposes of determining whether the project contains more than 1.25 million gold equivalent ounces (in reserves and measured and indicated resources) whereupon a further US$ 1 million payment must be made to Golden pursuant to the January acquisition. Payment may be cash or shares at San Marco's election.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

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