Vista Gold Corp. (Vista) has agreed to extend the due date for the second US$1.5 million option payment for the Guadalupe de los Reyes gold / silver project in Sinaloa (Mexico) by six months to 23 April 2019. As consideration for the deferral, the company will receive an additional US$150 000 in cash, US$50 000 of which was paid to Vista on 24 October 2018 and US$100 000 of which Minera Alamos Inc. (Minera Alamos) has agreed to pay by 23 January 2019. In addition, Minera Alamos has agreed to pay interest at a rate of 1.5% per month on the unpaid balance of the US$1.5 million payment beginning 24 January 2019.
On 24 October 2017, the company announced the closing of the option agreement, wherein Vista granted Minera Alamos an exclusive option to earn a 100% interest in the GdlR project by, among other things, making payments totaling US$6.0 million comprised of a payment of US$1.5 million made at the execution of the option agreement, two successive payments of US$1.5 million each to be made at the one year and two year anniversaries of the option agreement, and a final US$1.5 million payment to be made before the four year anniversary of the option agreement. To date, the company has received the initial US$1.5 million payment as partial consideration for the GdlR project and US$50 000 as partial consideration for the six month deferral of the second payment.
Frederick H. Earnest, President and CEO, commented: "Minera Alamos has made good progress in advancing the GdlR project. We believe the additional consideration they have offered demonstrates their commitment to the planned development of the project."
Read the article online at: https://www.globalminingreview.com/finance-business/25102018/vista-gold-corp-extends-due-date-for-guadeloupe-de-los-reyes-option-payment/