The LOI calls for the issuance of up to 23,500,000 shares of the Company following a consolidation of Telferscot shares to equal not more than 3,000,000 issued and outstanding immediately prior to completion.
The Company currently has 104,856,961 shares outstanding following the recent Return of Capital (see Press Releases dated March 24, 2016 and April 29, 2016).
Auxico’s principal project is the Zamora Property, located in the State of Sinaloa, Mexico approximately 85km southeast of the city of Culiacan. Zamora covers 3,376 hectares and hosts 15 Silver/Gold mines and exploration prospects.
Historical workings at Zamora date back to the 1800’s and in 1982 the Consejo de Recursos Minerales "CRM" (now referred to as the Servicio Geologico Mexicano "SRM" or Geological Services of Mexico) partially restored remaining mine infrastructure on the property. Details on historic resources at Zamoro will be provided in due course.
Auxico recently announced a strategic supply alliance with CVMR® Corporation to produce nano silver powders for their clients in the defense, aerospace, electronics, automotive and medical industries.
Additionally, Auxico disclosed that it has reached an agreement to lease port facilities at Coatzacoalcos, Mexico which will enable the company to ship directly to CVMR® in Toronto.
There are a number of conditions precedent for both Telferscot and Auxico to the completion of a Definitive Agreement for the acquisition including, but not limited to, completion of due diligence, a consolidation of Telferscot shares at a ratio of one new share for each thirty-five existing shares, completion of ongoing audits, and any necessary exchange and regulatory approvals.
