Laredo Resources Corp. (OTCBB:LRDR) entered into a letter of intent to acquire Pony Mountain Gold from Magna Management Ltd. on November 2, 2012. Laredo Resources expects to pay the purchase price through a combination of cash payment and issuance of common stock. Under the agreement, Laredo would be entitled to exclusive proprietary marketing rights for the property in exchange for total payments of CAD 3 million to be made in quarterly installments of CAD 0.25 million each. Magna Management Ltd. will retain a perpetual 2% net smelter royalty. Under the terms of transaction, Laredo Resources has a period of sixty days, to negotiate for the purchase of property. Laredo Resources intends to fund the transaction through debt and/or equity financing arrangements. The deal closing was extended to February 20, 2013.

On May 1, 2013 Laredo announced a CAD 2.5 million private placement offering for the exploration, development and acquisition of Pony Mountain Gold. The transaction is subject to consummation of ongoing negotiations. As of September 6, 2013, Laredo memorialized the agreement with Magna Management.