this is a big step for silvermex. this little company doesn't have the large cash balances of its parent, so the rosario property is not as important for its mineral resources as for the infrastructure involved. i was wondering how silvermex would ever raise the funds to go into production, but they seem to have largely solved that problem with the acquisition of the mills and buildings at the site. it looks like the total cost will be $4.25 million and 2 million shares of stock, and if all of the equipment works, that will be a bargain.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 22, 2009) - Silvermex Resources Ltd. (TSX VENTURE:SMR - News; the "Company" or "Silvermex") is pleased to announce it has entered into an agreement with Aurcana Corporation (TSX VENTURE:AUN - News; "Aurcana") to acquire a 100% interest in the silver -- gold -- lead -- zinc Rosario Property ("Rosario Property") located in south eastern Sinaloa State, Mexico. The Rosario Property consists of 18 concessions totaling approximately 8,515 hectares and is located approximately 94 kilometres southeast of Mazatlan. The property is strategically located within 2 kilometres of Silvermex's 1,250 hectare San Marcial Silver property.

The Rosario Property was acquired in order to consolidate Silvermex's land position in the San Marcial area and will help to accelerate Silvermex's objective of becoming a near-term silver producer. The proximity to Silvermex's San Marcial project combined with the silver resource and existing infrastructure at Rosario will significantly reduce both time and capital expenditures required for production.

The acquisition will include all facilities and infrastructure, including surface rights, underground workings, tailings dam, water, power, offices, shops, 60 man camp, warehouses and assay lab. The previous operator completed partial renovations to the mine and mill site including; upgrading of electrical substations and wiring, camp accommodations upgrades, mine dewatering and detailed engineering of an 800 tonne per day (t/d) mill. The acquisition also includes an extensive list of mill equipment and vehicles, including; a 1,200 t/d SAG ("Semi-Autogenous Grinding") mill, two 9 by 12 ball mills, numerous feeders and tanks, electrical equipment, loader/backhoe, trucks, pumps, compressors, etc.

http://finance.yahoo.com/news/Silver...