War Eagle Mining Company
TSX-V : WAR
ProjectsTres Marias

 


In December, 2013, War Eagle sold its Mexican subsidiary, Tombstone Exploration de Mexico S.A. de C.V. owner of the Tres Marias zinc-germanium-lead mine in Chihuahua, Mexico, to Contratista y Operaciones Mineras S.A. (Comsa) a private Mexican mining company for US$2.5 million cash of which US$800,000 has been received and the balance of US$1,700,000 is receivable in quarterly installments up to March 2018 together with a 2% NSR royalty to a total of a further US$2.5 million and possible additional payments based on the volume of metal sales and prices which could bring the total sale price to US$5.8 million. If Comsa should default in any payment, the sale agreement provides that after a grace period the remaining unpaid installments accelerate and become payable and the mine could revert to War Eagle. At the present time, Comsa has made progress in permitting and rehabilitating the mine and has recommenced commercial production and sale of concentrates in the global metals market. Comsa has the option to prepay any of the mandatory installments and on or before September 30, 2016, to acquire all of the rights of War Eagle upon payment of US$1,600,000.


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