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Blackrock Gold Amends Key Terms of Silver Cloud Project Securing Buyout Option and Reduces Upfront Obligations
Vancouver, British Columbia--(Newsfile Corp. - June 3, 2019) - Blackrock Gold Corp. ( TSXV: BR...
About this update from Blackrock Silver Corp
[{"type":"text","content":"Blackrock Gold Amends Key Terms of Silver Cloud Project Securing Buyout Option and Reduces Upfront ObligationsVancouver, British Columbia--(Newsfile Corp. - June 3, 2019) - Blackrock Gold Corp. (TSXV: BRC) (\"Blackrock\") reports that it has negotiated an Amended Lease Agreement with Pescio Exploration LLC (\"Pescio\" or \"Owner\") with respect to 552 unpatented lode mining claims situated in Elko, Nevada, known as the Silver Cloud project.Blackrock and Pescio have agreed upon amendments that will see up-front payments reduced for Blackrock, while also providing for a new provision allowing for the full buyout of the project. These concessions, among others that were granted, are in exchange for agreeing to an extension of our commitment to the project through at least 2022 and a small reduction to the existing royalty buydown. In addition, Blackrock has agreed to no longer credit cumulative lease payments against future royalty obligations.Commenting on securing the key amendments sought to the underlying terms, Blackrock's CEO, Andrew Pollard stated, \"These new changes represent a major win for the Company and our investors. Between now and 2022, the revised payment schedule will allow Blackrock to save $175,000USD. Better yet, the addition of a buyout option, the first one ever granted on this project since it was staked in 1999, and subsequently leased to Teck, means that we now stand to save millions of dollars in upfront, out of pocket, and perpetual costs, should we elect to exercise. This buyout option affords Blackrock the opportunity to control its' own destiny should our exploration efforts prove fruitful, and provides certainty to investors knowing we now have a path to full ownership. I'd like to thank the vendors for their willingness in helping to further position ourselves for success as we embark upon our journey.\"Blackrock has negotiated following amendments as listed belowBlackrock has negotiated a Buyout Option to purchase 100% ownership in the Silver Cloud project subject to a 3.5% production royalty in favor of Pescio. Pescio has granted to Blackrock the sole and exclusive option to purchase and own 100% of the Silver Cloud property for a total purchase price of three million five hundred thousand ($3,500,000.USD) on or before Oct 27, 2023, If Blackrock elects to exercise their option to purchase the Silv...