Latin gets leeway on cash payments
PERTH (miningweekly.com) – Explorer Latin Resources on Friday reported a new definitive agreement amending the 2011 sales agreement for the Guadalupito project, in Peru, that would allow the company to defer its cash obligations.
Latin Resources noted that agreement allowed the company to significantly offset a total amount of $4.9-million in cash payment obligations due between 2014 and 2017, to subsequent years.
Over this period, the company would also issue some 11-million ordinary shares in lieu of $621 000 in cash payments.
Under the agreement, the 14 vendor companies that originally owned the 20 mining concessions making up the Guadalupito project, have agreed to transfer ownership of two additional concessions adjacent to the Guadalupito concessions.
As part of the amendment, Latin had also agreed to increase its royalty payment to the vendors from 1% net smelter royalty to 1.5%, and would extend the royalty to cover all Latin-owned mining concessions within 5 km of the limits of the concessions covered by the sales agreement.
Latin MD Chris Gale said on Friday that the deferment of the capital payment allowed the company to progress through its crucial years for feasibility and construction.
“We expect these reductions will also contribute significantly to attracting a suitable joint venture partner for the project,” he added.
Guadalupito has a Joint Ore Reserves Committee-compliant inferred mineral sands resource of some 1.4-billion tons, averaging 5.7% heavy minerals. The project also has a conceptual exploration target of four-billion tons of mineralised sediments.
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