Mercado Minerals Ltd. has signed a letter of intent to acquire a 100% interest in the La Franca concession, consolidating the property with its existing Campanillas ground at the Zamora project in Sinaloa, Mexico.

The transaction is structured as a three-year option agreement requiring staged payments totalling US$600,000. Under the terms, Mercado will pay US$100,000 upon signing, followed by three payments of US$33,333.33 at four, eight, and twelve months, with payments of US$200,000 due on each of the second and third anniversaries. The concession remains subject to a 2% net smelter return royalty, which the company holds the right to buy back in whole for US$500,000.

Consolidating the La Franca and Campanillas concessions unlocks 750 metres of combined vein strike extent that has never been drill tested. Surface chip sampling from the La Franca segment returned multiple high-grade intervals, including 1.00 metre grading 1,530 g/t silver and 1.39 g/t gold, and 0.80 metre grading 534 g/t silver and 3.58 g/t gold.

“The 2026 results at La Franca, together with the historical data, confirm why we want to acquire the concession. Consolidating La Franca with the Campanillas segment of the vein gives us 750 metres of combined vein strike extent of high-grade silver and gold mineralization at Zamora that has never been drill tested, including multiple results exceeding one kilogram per tonne in silver. Our team's field mapping and sampling have built the confidence to move forward with permitting and advancing Mercado's inaugural diamond drill program to test this vein system and unlock its full potential.” — Daniel Rodriguez, CEO & Director

A qualified person has noted that sufficient work has not been conducted to independently validate the historical assay rock sample results, and they are currently treated as historical in nature.

The company previously secured a community access and exploration agreement with the local Ejido Rincon de Ibonia covering the Campanillas area to advance drill permitting. Mercado now intends to sign a definitive agreement for the option, apply for permits immediately, and advance its inaugural diamond drill program to test the consolidated vein system.

Read the full announcement: Mercado Minerals Signs LOI to Acquire La Franca within the Zamora Project and Samples 1.00 Metre of 1.53 kg/t Silver and 1.39 g/t Gold