What you need to know: • Capitan Silver announced an LOI to acquire 100% ownership of the remaining land surrounding the Cruz de Plata Silver-Gold Project. • The transaction will consist of US$4.0M (in two installments) with no royalty or dilutive share payments. • We remind readers of the ongoing 10,000m drill program (results expected soon) and plans to update its MRE on the Oxide Gold Deposit. • We are increasing our target price to $1.30/share based on US$2.0/oz AuEq in-the-ground valuation, reflecting the consolidated land. .package.We are increasing our target price to $1.30/share based on US$2.0/oz AgEq in-the-ground valuation, reflecting the consolidated land package. This morning, Capitan Silver announced that it has signed an LOI to acquire the remaining land from Minera Fresnillo S.A. de C.V. surrounding the Cruz de Plata Silver-Gold Project in Durango, Mexico. The LOI consists of a 100% interest in seven mineral concessions which are located directly adjacent and surrounding its Cruz de Plata Project. This acquisition nearly doubles its total land package in the district, shoring up the full extent of the mineralization and allowing CAPT and its shareholders to benefit 100% from all its exploration activities going forward. Beyond today’s announcement, we remind readers of the ongoing 10,000m program as well as the pending updated MRE on the Oxide Gold Deposit. We broke down the plans for the Phase 1 drill campaign in our previous research note on March 4th (find it here). We are maintaining our BUY rating and increasing our target price to $1.30/share on CAPT (previously $0.80/share). Today’s acquisition will expand the surface expression of the 2.5km silver-gold trend to 3.7km as well as open up ground for potential infrastructure development and improved program efficiencies. The transaction is made up of a total cash consideration of US$4.0M, paid in two installments, US$2.0M payable upon execution and ratification of the definitive agreement and US$2.0M payable on or before the second anniversary of the closing. Surprisingly, and to shareholder benefit, there are no royalties or share payments for the transaction.