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Explorer to Acquire Historical Mining District Property in Colorado
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The company already began exploration work there with the goal of defining drill targets.

Metallic Minerals Corp. (MMG:TSX.V; MMNGF:OTCMKTS) announced in a news release it entered an agreement to acquire the La Plata silver-gold-copper property in southwest Colorado from two private entities.

The property, which spans 32.7 square kilometers, is located in the historical, high-grade La Plata mining district about 26 kilometers northwest of Durango. The La Plata acreage "hosts a large-scale, precious metals-rich porphyry system with associated high-grade silver and gold epithermal deposits," the release noted.

For the La Plata property, Metallic Minerals will pay each vendor 5 million units (each unit consists of one common share and one-half of a share purchase warrant) and, over the next four years, $250,000 upon achieving specific milestones. Also, each vendor will retain a 1% net smelter return (NSR) royalty. Metallic Minerals may pay each vendor $500,000 to lower the NSR royalty to 0.75%.

The Canadian exploration company launched a property-wide exploration program, collecting new and historical geologic, geochemical and geophysical data, to delineate targets for future drilling.

"We believe that systematic exploration at the La Plata property has the potential to not only rapidly enhance the size of the known historic mineral resources but to identify and expand the higher-grade zones within the broader porphyry and epithermal mineralized systems," Metallic Minerals President and CEO Greg Johnson said in the release.

The company noted that silver was first discovered in the district by Spanish explorers in the 1700s, high-grade silver and gold production has been documented from the 1870s through early 1940s, and Rio Tinto, Exxon and Freeport-McMoRan explored the area in the 1950s through 1970s. [NLINSERT]

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Metallic Minerals. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Metallic Minerals. Please click here for more information.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Metallic Minerals, a company mentioned in this article.

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