Late in 2005 one of the authors (Schmidt) visited the property for the first time with R. Farias and was encouraged by available data and assay results returned from several initial samples. On the strength of the old file report from ASARCO, field observations and assay results, a Letter of Agreement was negotiated on the property between R. Farias and Pan American Gold Corp. (“Pan American”) and signed May 10, 2006. Pan American incorporated a Mexican subsidiary, Compania Minera P.A.M., S.A. de C.V. in August, 2006 and completed a final contract agreement for the Huicicila property in Spanish and English for the new company In September, 2006.