Firma Holdings Corp. (FRMA)

[Sam Dan]

Canaccord Genuity is a Broker site of some significance their report is very favourable towards FRMA's new partner " Hawkeye Gold & Diamond announced it entered into a letter of intent (LOI) with a third-party independent vendor to purchase a 50% interest in the La Cobriza project for US$4.5M. The property is a gold and silver project located 125km northeast of Mazatlan and is next to the Tayoltita mine of Primero Mining (P). Greg Neeld, HGO’s CEO, commented, "While the La Cobriza project is early stage, the project has been a past producer. We are attracted by the reported grades, widths and strikes of the known mineralized structures, its proximity to a known highgrade Au-Ag deposit, and the presence of an existing mill. Near-term gold and silver production for Hawkeye is consistent with Hawkeye's new corporate model for acquiring projects with cash flowing opportunities and blue-sky discovery upside.” Cobriza is an old Spanish mine that has had extensive work done on it since the early 1800s. More recently, it has been explored, but has also seen occasional production since 2006. The properties have not been explored systematically with modern methods such as diamond drilling. US$3.8M of the purchase agreement will go towards capital expenditures for work programs, upgrading and/or purchase of new mining equipment to advance the project. Separately, HGO announced with regret, that the company returned the Rex property to the vendor and no longer owns an interest in the claim
Obviously Hawkeye has walked away from a project REX to join with FRMA.