12:53 PM EDT, 06/11/2020 (MT Newswires) -- Silver Spruce Resources (SSE.V) on Thursday said it agreed to acquire a 50% stake in the El Mezquite Gold project in Mexico from Colibri Resource (CBI.V) for US$0.21 million in cash and a C$0.5 million promissory note.

The company said it will also be required to spend US$0.6 million on exploration of the property over the next four years.

"We are very pleased to acquire El Mezquite in a very productive, mining-friendly region. The company is quickly reviewing the geological database and developing exploration plans," Greg Davison, a Silver Spruce director, said in a release.

Silver Spruce shares last traded Wednesday, closing at C$0.04 on the TSX Venture Exchange.

Price: 0.04, Change: 0.00, Percent Change: 0.00