Condor Gold said it had bought the concession next to its La India Project in Nicaragua for just over one million dollars.
It thinks there is a possibility its La India gold resource could extend onto the newly purchased La Mojarra Concession.
The company added there was a chance of additional gold mineralised resources elsewhere on the 27sq km concession.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The $1.01m cost of La Mojarra is to be paid in cash and shares.
Chief Executive Mark Childs said "an initial assessment of La Mojarra Concession summises that the surface geological features suggest the potential for the discovery of significant buried gold mineralisation".
"Condor will initiate a geophysics programme on La Mojarra and other concessions in La India Project within the next six months," he said.
