First Majestic options Platino

Canadian junior First Majestic (TSX-V: FR) has signed an agreement with fellow Vancouverite Consolidated JABA (TSX-V: JBA) to earn up to 80% in the latter's 30,000ha Platino Porphyry project in southern Argentina's Chubut province. Under the deal, First Majestic must spend US$3mn in exploration in the first four years, the company said in a statement. In addition, it must complete a bankable feasibility study within the following five years by spending an additional US$100,000/y. The agreement also stipulates a minimum work program of US$150,000 prior to March 31, 2004, said First Majestic. JABA, also a junior resource company, has the option of being the operator for the first two years for which it can earn a 7% management fee, it said. First Majestic said that field crews are expected to be mobilized shortly to identify drill targets. First Majestic has just closed a private placement to raise Cdn$600,000 by issuing 3 million shares at Cdn$0.20 a piece. It also has an option to earn the Niko-Estrella silver project in Mexico, also from JABA.