Mercado Minerals Signs LOI to Acquire La Franca within the Zamora Project and Samples 1.00 Metre of 1.53 kg/t Silver and 1.39 g/t Gold
Mercado secures a three-year, US$600,000 option path to consolidate La Franca with Campanillas and prepare first drilling at Zamora.
Rhea-AI Summary
Mercado Minerals (MRMNF) signed a Letter of Intent to option 100% of the La Franca concession within its Zamora project in Mexico.
The contemplated definitive agreement grants a three-year option via staged cash payments totalling US$600,000, while the asset remains subject to a 2% Net Smelter Return royalty, fully buyable for US$500,000. Consolidating La Franca with Mercado’s surrounding Campanillas concession would create 750 metres of continuous, high-grade silver-gold vein strike that has never been drill tested. Recent 2026 chip samples from La Franca include 1.00 metre at 1,530 g/t silver and 1.39 g/t gold (1,501 g/t AgEq) and 0.80 metre at 534 g/t silver and 3.58 g/t gold (757 g/t AgEq), alongside historical grab samples up to 1,720 g/t silver and 12.96 g/t gold (2,530 g/t AgEq). Mercado plans to begin permitting for an inaugural diamond drill program at Campanillas–La Franca.
Positive
- Three-year option to earn 100% of La Franca for US$600,000 in staged payments
- Consolidation of La Franca and Campanillas unlocks 750 metres of previously undrilled silver-gold vein strike
- 2026 chip sample returned 1.00 m at 1,530 g/t Ag and 1.39 g/t Au (1,501 g/t AgEq)
- Another 2026 chip sample returned 0.80 m at 534 g/t Ag and 3.58 g/t Au (757 g/t AgEq)
- Historical grab sample results up to 1,720 g/t Ag and 12.96 g/t Au (2,530 g/t AgEq)
- Royalty burden capped by a 2% NSR that can be fully bought back for US$500,000
Negative
- Agreement is currently only an LOI; definitive option agreement has not yet been executed
- Option structure requires staged cash payments up to US$600,000 over three years
- All current La Franca and Zamora results are treated as historical until independently verified by the Qualified Person
- No metallurgical testwork has been completed on the property; silver-equivalent grades rely on assumptions from analogous deposits
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - September 18, 2026) - Mercado Minerals Ltd. (CSE: MERC) (OTCQB: MRMNF) ("Mercado" or the "Company") is pleased to announce the signing of a Letter of Intent ("LOI") to purchase the La Franca concession ("La Franca") surrounded by Mercado's Campanillas concession on the Zamora project in Sinaloa, Mexico. Once a Definitive Agreement is signed, it is structured as a three year option agreement to acquire
Highlights:
Consolidation of the La Franca and Campanillas concessions unlocks 750 metres of combined vein strike extent of high-grade silver and gold mineralization that has never been drill tested
2026 chip Sampling from the La Franca segment of the vein returned:
1.00 metre of 1530 g/t silver and 1.39 g/t gold (1501 g/t AgEq)
0.80 metre of 534 g/t silver and 3.58 g/t gold (757 g/t AgEq)
3.00 metres (true width) of 229 g/t silver, and 1.12 g/t gold (295 g/t AgEq)
Historic Samples from the La Franca segment of the vein returned:
1,720 g/t silver and 12.96 g/t gold (2,530 AgEq) in a stope wallrock grab sample
460 g/t silver and 2.90 g/t gold (634 AgEq) in a 42 kg blended underground grab sample
The Company intends to initiate the process to apply for permits to drill test Campanillas - La Franca immediately
CEO Comment
Daniel Rodriguez CEO & Director commented:
"The 2026 results at La Franca, together with the historical data, confirm why we want to acquire the concession. Consolidating La Franca with the Campanillas segment of the vein gives us 750 metres of combined vein strike extent of high-grade silver and gold mineralization at Zamora that has never been drill tested, including multiple results exceeding one kilogram per tonne in silver. Our team's field mapping and sampling have built the confidence to move forward with permitting and advancing Mercado's inaugural diamond drill program to test this vein system and unlock its full potential."
Table 1. La Franca Vein Surface Chip Sampling Results1
| Sample ID | Sample Type | Sample Length (m) | Lithology | Ag (g/t) | Au (g/t) | Pb % | Zn % | AgEq (g/t) |
| G874272 | chip | 0.80 | Quartz Vein | 534 | 3.58 | 1.39 | 0.74 | 757 |
| G874273 | chip | 0.60 | Quartz Vein | 189 | 0.12 | 0.85 | 0.70 | 184 |
| G874274 | chip | 0.60 | Quartz Vein | 45 | 0.09 | 0.30 | 0.34 | 49 |
| G874275 | chip | 0.80 | Quartz Vein | 216 | 0.70 | 0.72 | 0.21 | 251 |
| G874276 | chip | 1.10 | Quartz Vein | 126 | 1.54 | 0.60 | 0.35 | 231 |
| G874277 | chip | 0.70 | Silicified Andesite | 38 | 0.23 | 0.38 | 0.58 | 53 |
| G874278 | chip | 1.00 | Quartz Vein | 14 | 0.12 | 0.12 | 0.55 | 23 |
| G874279 | chip | 0.90 | Quartz Vein | 19 | 0.09 | 0.14 | 0.46 | 25 |
| G874280 | chip | 0.60 | Quartz Vein | 21 | 0.11 | 0.51 | 0.15 | 28 |
| G874296 | chip | 1.00 | Silicified Andesite | 119 | 0.36 | 0.82 | 1.40 | 139 |
| G874297 | chip | 0.60 | Quartz Stockworked Andesite | 32 | 0.04 | 0.12 | 0.43 | 34 |
| G874298 | chip | 0.90 | Quartz Vein | 99 | 0.12 | 0.32 | 0.35 | 100 |
| G874299 | chip | 0.90 | Silicified Andesite | 65 | 0.14 | 0.69 | 1.14 | 73 |
| G874300 | chip | 0.80 | Quartz Vein | 1530 | 1.39 | 2.11 | 0.84 | 1501 |
1 Silver-equivalent values are calculated assuming typical recoveries based on metallurgical studies conducted on analogous epithermal vein deposits and are not necessarily reflective of metallurgy on the property. No metallurgical work has been reported on the property. The recoveries used are
Figure 1 - Zamora Project plan map of surface mapping and sampling at the Campanillas - La Franca Vein target.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/12124/314960_ed3812b0a48ac9eb_002full.jpg
The technical information and data for the Zamora property appears to be of a good standard. However, the QP has not conducted sufficient work to independently validate the assay rock sample results from Zamora. Therefore, the Company is treating the Zamora results as historical in nature and are not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.
Letter Of Intent Terms
Under the terms of the LOI, and contemplated for the Definitive agreement, Mercado can earn a
Quality Assurance/Quality Control and Chain of Custody
All 2026 rock samples are chip samples. Chip samples are laid out with visual sample interval marks, across the perceived true width of veins and structures, before being systematically chipped into sample bags. Once bagged, samples are grouped into rice bags and secured by a locking security tag with a unique security tag identification number. Sample batches are transported from the exploration site in Zamora to a secured courier transport service vehicle provided by ALS Laboratories. The samples are delivered by ALS secured courier to their laboratory in Hermosillo for analysis.
Samples are crushed by ALS to over 70 per cent passing below two millimetres and split using a riffle splitter. Sample splits are then pulverized to over 85 per cent passing below 75 microns. Gold determinations are completed by fire assay with an atomic absorption (AA) finish on a 30 g subsample of the prepared pulp (Au-AA23). Any sample returning over 10 g/t gold is re-analyzed by fire assay with a gravimetric finish on a 50 g subsample (Au-GRA21). In addition, a 34-element analysis is performed on a 0.25 g subsample of the prepared pulps by a four acid digestion followed by an inductively coupled plasma atomic emission spectroscopy (ICP-AES) finish (ME-ICP61). Samples that return overlimit values for silver, lead or zinc are finished by Ore Grade analysis (Ag-OG62, Pb-OG62 and/or Zn-OG62).
Qualified Person
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for Mineral Projects) and was reviewed and approved by Kelson Willms, P.Geo., of Archer, Cathro & Associates (1981) Limited. Mr. Willms is a Qualified Person for the purposes of National Instrument 43-101.
About Mercado Minerals Ltd.
Mercado Minerals Ltd. (CSE: MERC) (OTCQB: MRMNF) is a silver-focused exploration company targeting the next world-class discovery in Mexico's emerging Western Silver Belt, part of the prolific Sierra Madre Occidental mining district. With a proven team boasting extensive experience in Mexican exploration, Mercado is actively advancing multiple projects across more than 3,000 hectares. The Company is committed to creating shareholder value through disciplined exploration, strategic growth, and discovery-driven results.
For further information, contact:
Daniel Rodriguez
CEO & Director
Phone: (604) 353-4080
Email: drodriguez@mercadominerals.com
John Fraser
VP Business Development & Director
Phone: (604) 838-7677
Email: jfraser@mercadominerals.com
Forward-Looking Statement (Safe Harbor Statement):
This press release contains forward-looking statements within the meaning of applicable securities laws. The use of any of the words "anticipate," "plan," "continue," "expect," "estimate," "objective," "may," "will," "project," "should," "predict," "potential" and similar expressions are intended to identify forward-looking statements. In particular, this press release contains forward-looking statements concerning the Company's exploration plans and the intended use of proceeds from the Offering. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on these statements because the Company cannot provide assurance that they will prove correct. Forward-looking statements involve inherent risks and uncertainties, and actual results may differ materially from those anticipated. These forward-looking statements are made as of the date of this press release, and, except as required by law, the Company disclaims any intent or obligation to update publicly any forward-looking statements.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/314960
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What are the detailed payment terms for Mercado’s option to acquire La Franca?
The contemplated definitive agreement allows Mercado to earn a 100% interest in La Franca via staged cash payments totalling US$600,000 over three years: US$100,000 on signing, then US$33,333.33 at four, eight and twelve months after signing (the twelve-month instalment aligning with the first anniversary), followed by US$200,000 on the second anniversary and US$200,000 on the third anniversary.
How is the 2% Net Smelter Return royalty on La Franca structured?
The La Franca concession will remain subject to a 2% Net Smelter Return (NSR) royalty. Mercado has the right to buy back the full 2% NSR for a one-time payment of US$500,000, which would extinguish the royalty.
What exploration work does Mercado plan next at the Campanillas–La Franca target?
The company intends to initiate the process to apply for permits to drill test the Campanillas–La Franca vein system. Management describes this as advancing Mercado’s inaugural diamond drill program on the Zamora project.
How were the 2026 La Franca chip samples collected and analyzed?
All 2026 samples are chip samples taken across visually marked intervals approximating true vein widths. Samples are bagged, grouped into rice bags, sealed with uniquely numbered security tags, and transported from Zamora to ALS Laboratories via secured courier. At ALS Hermosillo, samples are crushed to over 70% passing 2 mm, riffle split, and pulverized to over 85% passing 75 microns. Gold is analyzed by 30 g fire assay with AA finish (Au-AA23), with over-10 g/t gold samples re-run by fire assay with gravimetric finish (Au-GRA21). A 34-element suite is analyzed by four-acid digestion with ICP-AES (ME-ICP61), and overlimit silver, lead, or zinc are finished by ore-grade methods (Ag-OG62, Pb-OG62, Zn-OG62).
How were the silver-equivalent (AgEq) grades for La Franca calculated?
Silver-equivalent values use assumed recoveries of 91% silver, 94% gold, 70% lead, and 75% zinc, and metal prices of US$24/oz silver, US$1,900/oz gold, US$0.90/lb lead, and US$1.10/lb zinc. The calculation combines the metal values into a silver-equivalent using these prices and recoveries; numbers may not match exactly due to rounding.
What caveats has Mercado provided about the reliability of existing Zamora assay results?
The company states that while the technical information for Zamora appears to be of good standard, the Qualified Person has not conducted sufficient work to independently validate the rock sample assays. As a result, Mercado is treating the Zamora results as historical and not to be relied upon until the Qualified Person verifies them during a planned site visit.
Who is the Qualified Person responsible for reviewing this technical disclosure?
The technical information was reviewed and approved by Kelson Willms, P.Geo., of Archer, Cathro & Associates (1981) Limited, who is identified as a Qualified Person under NI 43-101.