Impact: Positive
Tarachi Gold announced that it has entered into a non-binding letter of intent (LOI) with privately owned Manto Resources S.A. de C.V., pursuant to which the company may acquire certain assets related to the Magistral del Oro tailings processing plant (MDO plant) in Durango, Mexico. We view this as a positive step for Tarachi since it provides the opportunity to enter near-term production and generate free cash flow, at relatively low operating costs and by taking on minimal risk.
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