The Jalisco Group of Properties is owned by First Majestic Silver Corp. and consists of 5,245 hectares of mining claims in Jalisco, Mexico. In January 2011, the Company entered into a Letter of Intent whereby the Company has agreed to grant an option to acquire up to 90% in the Jalisco Group of Properties (the "Properties"). A definitive agreement was entered into on April 15, 2011 with Sonora Resources Corp. (the "Optionee"), whereby the Optionee issued 10 million shares of common stock to the Company and is committed to spend $3 million over the first 3 years to earn a 50% interest and $5 million over 5 years to earn a 70% interest. In order to obtain a 90% interest, the Optionee is required to complete a bankable feasibility study within 7 years. First Majestic will retain a 10% free carried interest and a 2.375% NSR.
The Jalisco Group of Properties is located in the Etzatlan mining district in Jalisco, Mexico.
The Jalisco Group of Properties consists of a significant collection of mineral claims that encompass a centrally located and historically productive silver and gold district in México. The properties have hosted several major regional silver mines dating back to the 1700s with well documented silver and gold production that primarily took place between 1902 and 1935. The location consists of six prospective areas of interest and includes the Etzatlán, Amparo, La Calabaza and Piedra Bola mines which all participated at various rates of production typical for the exploitation technologies and economics of the era.