Business
P2 Gold Restructures Gabbs Payment Terms
VANCOUVER, British Columbia, March 06, 2023 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) (OTCQB:PGLDF) reports that, subject to TSX Ven
About this update from P2 Gold Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, March 06, 2023 (GLOBE NEWSWIRE) -- P2 Gold Inc. (“P2” or the “Company”) (TSX-V:PGLD) (OTCQB:PGLDF) reports that, subject to TSX Venture Exchange (the “Exchange”) approval, it has restructured the outstanding payment terms for the acquisition of the Gabbs Project located on the Walker-Lane Trend in the Fairplay Mining District of Nye County, Nevada. (See the Company’s news releases dated February 23, 2021, announcing the acquisition of the Gabbs Project, and May 5, 2021 and April 28, 2022, announcing amendments to the terms of the acquisition of the Gabbs Project). “We appreciate Waterton’s support in restructuring the payment terms for the acquisition of our Gabbs Project,” commented Joe Ovsenek, President and CEO of P2. “Under the prior terms, US$8.9 million was due this May. Now, the majority of the payments have been pushed off for over three years, giving us time to advance Gabbs to the point where we can sell a royalty or stream to fund the payments due to Waterton to complete the purchase of Gabbs.” As part of the restructuring, P2 has entered into an amending agreement (the “Amending Agreement”) with Waterton Nevada Splitter, LLC (“Waterton”), an affiliate of Waterton Precious Metals Fund II Cayman, LP pursuant to which P2 will now issue or pay to Waterton (a) 2,659,748 shares in the capital of the Company following Exchange approval of the Amending Agreement, (b) US$150,000 on or before December 31, 2023, (c) US$250,000 on or before December 31, 2024, (d) US$2 million on or before December 31, 2025 and (e) US$2.4 million on or before December 31, 2026. The Amending Agreement also contemplates, (x) if P2 raises, through the issuance of debt or equity, in excess of C$7.5 million (excluding flow-through funds), 10% of the funds raised will be paid to Waterton against the longest dated milestone payment and (y) on the sale of an interest in, or of, Gabbs, the proceeds will be paid to Waterton up to the amount outstanding at the time. In addition, P2 will issue to Waterton a US$4,000,000, zero coupon convertible note (the “Note”) with a four-year term convertible at a price of C$0.30 per share provided that the Note cannot be converted if all payments due under the Amending Agreement have been made at the time the Note is called (other than if a change of control is to occur prior to repayment of...