Tarachi Gold Corp. (CNSX:TRG) entered into a non-binding letter of intent to acquire Certain Assets Related to the Magistral del Oro Tailing Processing Plant in Durango, Mexico from Manto Resources S.A. de C.V. for $8.9 million on October 9, 2020. As of February 8, 2021, Tarachi Gold Corp. has signed the final purchase agreement to acquire Certain Assets Related to the Magistral del Oro Tailing Processing Plant in Durango, Mexico from Manto Resources S.A. de C.V for $7.1 million. Final terms of the Purchase Agreement are as follows: (i) 4 million common shares in the capital of Tarachi, (ii) the company will grant Manto a 15% net profits royalty on the estimated 1.3 million tonnes of tailings material expected to be processed and reimburse Manto for $1.2 million of cash outlays, and (iii) the company will satisfy certain obligations of Manto by paying a total of $1.1 million plus any Mexican value added tax and issuing a total of 1.69 million common shares within 90 days of closing. Additionally, Manto will be entitled to the following bonus payments after completion of the acquisition: (i) an additional of 4 million common shares 60 days after the closing date, (ii) 4 million common shares 180 days after the closing date, (iii) 4 million common shares 365 days after the closing date, (iv) $500,000 in cash following 6 months of commercial production at Magistral, (v) $500,000 in cash following 12 months of commercial production at Magistral, and (vi) upon the company earning $15 million in revenue from Magistral, the company will pay Manto $1 million. Completion of the acquisition is subject to a number of conditions, including but not limited to the execution of the Definitive Agreement, completion of satisfactory due diligence and receipt of all required regulatory, corporate and third party approvals, including the approval of the CSE and the fulfillment of all applicable regulatory requirements and conditions necessary to complete the acquisition. Tarachi Gold has retained Ausenco Engineering to complete an NI-43-101 compliant Preliminary Economic Assessment (PEA) report and to act as a consultant to the company in relation to the project. A finder's fee of 1,000,000 common shares will be issued to Spirit Exploration Corp.