- Vista Gold Corp (TSX:VGZ) has amended its option agreement with Prime Mining, regarding the Guadalupe de Los Reyes gold-silver project in Mexico
- The amended agreement bring forward Prime Mining’s final payment of approximately C$2.08 million to Vista Gold, which is now due by September 30, 2020
- Prime Mining is also required to pay approximately $2.8 million in lieu of royalties and back-in rights
- The second payment will be spread over two tranches at six and twelve months from September 30, 2020
- Vista Gold Corp (VGZ) is down 2.4 per cent and is trading at $1.20 per share
Vista Gold Corp (TSX:VGZ) has amended its option agreement with Prime Mining, regarding the Guadalupe de Los Reyes gold-silver project in Mexico.
The amended agreement will bring forward the final payment of an approximate C$2.08 million to Vista Gold from the Prime Mining. The final payment is now due on September 30 of this year.
Prime entered into the original agreement with Vista Gold’s wholly owned Mexican subsidiaries Minera Gold Stake Holdings, Granges Inc, and Minera Gold Stake S.A in October of 2017.
Prime Mining is also required to pay an additional approximate $2.8 million to Vista in place of some royalties and back-in rights related to the property. Prime Mining will pay this second payment over two trenches.
The first $1.4 million must be paid in the six months following September 30, with the remaining $1.3 million to be paid no later than 12 months from the same date.
President and CEO of Vista, Frederick H Earnest said he was pleased with the accelerated payment date. He went sat the company will utilise the new proceeds in its flagship Mt Todd property in Australia.
“Monetizing our non-core assets has generated working capital without significant dilution to our shareholders and retained greater leverage to the value of Mt Todd as we achieved important permitting milestones and improvements in the efficiency and economic potential of the project.
“We believe these achievements coupled with the improved gold price position Mt Todd as one of the most compelling development opportunities in the gold sector” He said.
Vista Gold Corp (VGZ) is down 2.4 per cent and is trading at $1.20 per share at 2:00 pm EDT.