Plexmar snaps up Cascajal, raising US$1.49mn

Canada's Plexmar Resources (TSX: PLE) reported Thursday an agreement to buy 100% of the 1,040ha Cascajal gold and silver property in northern Peru's La Libertad department. The company has arranged a Cdn$2mn (US$1.49mn) private placement to finance the acquisition and put the project into production, it said in a statement. Plexmar said it is currently negotiating the purchase of a 80t/d mill which would be set up to allow a gradual production increase to 500-750t/d, it said. Canadian miner Pan American Silver has calculated an inferred resource for Cascajal of 862,760t grading 4.93g/t gold and 246g/t silver, according to Plexmar. To date, four veins have been identified and sampled on the property, of which three are major while one is a minor splay, it said. Under the acquisition agreement, Plexmar has agreed to make cash payments totalling US$1mn over five years, with a US$500,000 payment in year five.