William to buy Mexican company

Toronto-based William Resources (TSE) intends to acquire all outstanding shares of Minas Colorada of Mexico.

Colorada operates three mines and a mill in Zacatecas state. The mill has a capacity of 240 tonnes per day and produces a silver-rich lead concentrate; William plans to boost the capacity to 500 tonnes.

The Canadian junior will acquire the shares for $1 million and 1 million William common shares, to be paid over a 5-year period. The vendor will receive a 3% net smelter return royalty and US$50,000 per year, payable out of 10% of Colorada’s net profit.