Mexico |Baluarte Property
On March 31, 2008, the Company acquired 99% of all the shares issued and outstanding of Metales, an exploration stage company located in Mexico whose operations include the acquisition,exploration, production, development and, where possible, operation of mining properties for gold and silver, in consideration for the issuance of 3,000,000 common shares of the Company and the payment of a net smelter return royalty of 2% on any mineral production from the fourmineral concessions comprising the Baluarte Property: El Sacrificio, Santa Rita, La Campana and Ampliacion Sacrificio.
During 2009, the Mexican properties were under care and maintenance mode as management focused its attention on the newly acquired Amizmiz Project.
The Baluarte project was ready for phase II of the exploration program as planning, design and permits for access road had been completed in 2008. However the Company does not intend to initiate of the exploration program consisting in road construction and drilling.
In December 2009, Management decided it would abandon the Baluarte- Santa-Rita El Sacrificio property and not pursue the option agreement.
The Company retains the La Campana property which it will maintain in an idle mode for 2010. It is management intention to proceed with the remaining November 2010 payment in order to confirm title over the property. The Company is currently evaluating different scenarios with respect to the La Campana property.