01:31 PM EDT, 10/28/2024 (MT Newswires) -- Halcones Precious Metals (HPM.V) on Monday said it entered into binding agreements to acquire the Polaris Project from Austral Exploraciones, an unlisted Chilean company.

Polaris is a highly prospective project with multiple past-producing, high grade gold mines and extensive gold mineralization identified in stockwork zones by recent rock sampling campaigns.

To acquire the project, Halcones will issue 50-million shares and US$100,000 in cash at the close of the transaction. It must then make payments of US$2.5 million over four years.

Several sampling campaigns including due diligence work completed by Halcones have returned high-grade results. Of the 350 samples collected from Polaris to date, 59 returned values greater than 5 g/t. The average gold grade from the 350 surface samples is 2.5 g/t.

Austral will also receive a 2% net smelter royalty in respect of the property.

Halcones was last seen unchanged at $0.05 on the TSX Venture Exchange.