Geopacific amends Kou Sa terms
PERTH (miningweekly.com) – ASX-listed Geopacific Resources has amended the acquisition terms for the Kou Sa gold project, in Cambodia.
In 2013, Geopacific and its joint venture partner The Royal Group signed a purchase agreement to acquire full ownership of the Kou Sa project from vendor Golden Resources Development.
Under the terms of that agreement, Geopacific was scheduled to make a $14-million payment to the vendors at the end of January 2015; however, new terms were agreed to in 2014 which saw Geopacific pay $1.4-million to the vendors at the end of January last year, with the balance of the $14-million payable in instalments every six months, ending on December 31, 2016.
Under the newly renegotiated agreement, announced on Monday, the final payment had been split and deferred and linked to achieving two project development milestones, including receipt of financial closure and production targets.
“We have achieved a more realistic outcome in light of difficult capital markets and the downturn in commodity pricing, making the negotiations a success,” said Geopacific MD Ron Heeks.
“This result is beneficial to shareholders and reduces our need to return to the market for capital. We remain focused on moving Kou Sa towards production and will invest available cash in the ground.”
In addition, the vendors would receive a 2% royalty on gold produced at Kou Sa, capped at $8.42-million, while Geopacific had committed to spending $1.57-million on a bankable feasibility study.
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