War Eagle Mining Company Inc. (TSX: V.WAR, Stock Forum) has completed the sale of the Tres Marias zinc-lead-germanium project in Chihuahua, Mexico to Contratista y Operaciones Mineras SA de CV (COMSA), a Mexican mining company.

According to the War Eagle Mining press release, total consideration for the sale was US$5.0 million cash which will be satisfied by (i) US$65,000 cash received on closing with the balance of US$2.435 million in fixed periodic cash payments over three years and (ii) a 2.0% net smelter return royalty to a maximum of a further US$2.5 million with (iii) a possible increase in the royalty to a maximum of up to US$3.3 million depending on metal sales volumes and prices.

“The transaction with COMSA enables the development of the mineral resource at Tres Marias such that shareholders of War Eagle can realize a return from the prior investment in the property,” said Thomas R. Atkins, President and CEO. “COMSA intends to mobilize mobile equipment that should enable the mining and processing of this small, but high grade zinc-lead germanium mineral resource at Tres Marias to the mutual benefit of both COMSA and War Eagle. Numerous permits are in place to facilitate rapid development and much of the mineral resource at Tres Marias is of such high grade that it can simply be mined and sent to a smelter.”

The sale of Tres Marias has received the approval of the shareholders of the company and the approval of the TSX Venture Exchange.

War Eagle is involved in the acquisition, exploration and, if warranted, development of mineral resource properties.