Mexivada delivered to California Gold four executed title deeds, each for a 20% interest in the AuroTellurio property concessions located south of the city of Moctezuma.
At this initial closing, California Gold delivered to Mexivada a cash payment of $10,000 and 250,000 restricted shares of its common stock.
California Gold said its attorneys will hold the four title deeds in escrow until they vest in favor of the company or expire, according to their terms.
The company can earn up to an 80% interest in the AuroTellurio property concessions over a 48-month period, in blocks of 20% each, by making annual payments to Mexivada of cash and shares of its restricted common stock and by investing up to $3m on the exploration of the concessions.
The AuroTellurio project is contiguous with a tellurium-gold mining project now being developed by a Mexican company that is believed to be controlled by First Solar.
