Starlo Ventures to Acquire Margarita Silver Project in Reverse Takeover

Starlo Ventures Ltd. has agreed to acquire the Margarita Silver Project in Chihuahua, Mexico, through a reverse takeover transaction valued at 40 million common shares and CAD $5 million in cash, shifting the Canadian company's primary focus to Latin American precious metals.

The transaction, structured through the purchase of private British Columbia company 1588867 B.C. Ltd., expands Starlo's mining portfolio into the Sierra Madre Gold Belt as junior explorers use reverse takeovers to secure advanced-stage assets and transition to senior exchanges.

Deal Terms and Concurrent Financing

Under the binding letter of intent announced by Starlo Ventures (CSE:SLO), the company will acquire a 100% interest in the Margarita property by issuing 40,000,000 common shares alongside the CAD $5,000,000 cash payment.

To fund the acquisition and ongoing exploration, Starlo will execute a concurrent private placement of 40,000,000 subscription receipts at $0.25 per receipt. This placement targets aggregate gross proceeds of $10,000,000.

Each subscription receipt will convert into one common share of the resulting issuer and one-half of a share purchase warrant. These warrants carry an exercise price of $0.35 and remain valid for two years from issuance.

Project Geography and Regional Context

What is the Margarita Project's geological setting?

The Margarita Silver Project comprises two mining concessions totaling 125.625 hectares situated in Chihuahua's mining district. The property lies approximately 88 kilometers southwest of the state capital of Chihuahua.

Geographically, the project sits 15 kilometers northwest of First Majestic Silver Corp.’s established Los Gatos Mine, placing the concession within a silver-bearing corridor historically favored by institutional miners for polymetallic vein systems.

Exchange Relisting and Corporate Strategy

Upon completion of the reverse takeover, the combined enterprise plans to execute a corporate rebranding by changing its name to reflect its new asset base.

As part of this transition, the company will voluntarily delist from the Canadian Securities Exchange (CSE) and apply for a listing on the TSX Venture Exchange (TSXV) as a Tier 2 Mining Issuer for broader institutional visibility.

The transaction remains subject to customary closing conditions, including regulatory approvals from both the CSE and the TSXV, as well as the successful completion of the concurrent financing round.