Business
VanGold Amends El Pinguico Royalties Purchase Agreement
Extends Payments To March 2023 VANCOUVER, BC / ACCESSWIRE / November 13 , 2020 / Van...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"VanGold Amends El Pinguico Royalties Purchase AgreementExtends Payments To March 2023VANCOUVER, BC / ACCESSWIRE / November 13, 2020 / VanGold Mining Corp (the \"Company\" or \"VanGold\") (TSXV:VGLD) is pleased to announce it has amended its option agreement (the \"Agreement\") to re-purchase three of the four underlying royalties on its El Pinguico silver and gold project located 7km south of Guanajuato, Mexico.VanGold Director Dan Oliver stated: \"We are very pleased to have reached this new Agreement with Hernan and Gerardo Dorado the original venders of El Pinguico. The new terms allow VanGold to extend the cash payment portion of the Agreement out until March 2023 to allow VanGold to direct more of its resources to developing the El Pinguico Project.\"Under the original terms of the option (the \"Option\"), as reported in the Company's August 20, 2020 news release, the Company had until December 31, 2020 to pay C$1,680,000 cash and issue 3,750,000 units of VanGold to the original vendor of the property Exploraciones Mineras Del Bajio S.A. de C.V. (\"EMBSA\"), a company controlled by Hernan Dorado (a Director of VanGold) and Gerado Dorado in order to eliminate three underlying royalties from the El Pinguico property. An upfront option payment of C$5,000 has been paid to EMBSA at the time of the execution of the Agreement, and C$200,000 has been paid to fulfill the November 2020 option requirement. Each Unit paid to EMBSA will be comprised of one common share and one non-transferable common share purchase warrant (a \"Warrant\") of VanGold. Each Warrant will entitle EMBSA to purchase one additional common share of VanGold at a price of $0.175 within five years of closing.Under the new terms, the Option shall be exercisable by VanGold making cash and share option payments to EMBSA as follows:(a) $200,000 cash and 3,750,000 Units on or before November 20, 2020;(b) $325,000 cash on or before February 22, 2021;(c) $525,000 cash on or before February 22, 2022; and(d) $625,000 cash on or before February 22, 2023.Upon exercise of the Option, VanGold's Mexican subsidiary, Obras Mineras El Pinguico, S.A de C.V., (\"OPMSA\") will own an undivided 100% interest in the El Pinguico silver and gold project free and clear from the royalties purchased in this agreement. A 15% net profits interest royalty will remain, in favour of EMBSA, solel...