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Ranchero Gold Enters Into a Letter of Intent to Sell Mexican Subsidiary, and Related Party Loan
VANCOUVER, British Columbia, Aug. 21, 2024 (GLOBE NEWSWIRE) -- Ranchero Gold Corp. (“Ranchero” or the “Company”) (TSX.V:RNCH) is pleased to announce that has en
About this update from Ranchero Gold Corp
[{"type":"text","content":" VANCOUVER, British Columbia, Aug. 21, 2024 (GLOBE NEWSWIRE) -- Ranchero Gold Corp. (“Ranchero” or the “Company”) (TSX.V:RNCH) is pleased to announce that has entered into a letter of intent to sell its wholly-owned subsidiary Minera y Metalurgia Paika, S.A. de C.V. (“Paika”) to an arm’s length party purchaser for nil consideration. The sale of Paika, which includes four licenses totaling 16,876 hectares on the Santa Daniela project area, regional water rights and a conditional payment of US$2,500,000 pursuant to the sale by Paika of four mineral licenses to Minas de Oro Nacional, S.A. de C.V., a wholly-owned subsidiary of Alamos Gold Inc. (TSX:AGI) as detailed in the Company’s press release on June 19, 2024 (“Conditional Payment”), will offset accrued liabilities in Paika of $3,545,852 of land fee payments and accrued interest due on the Santa Daniela mineral concessions (collectively, the “Liabilities”) along with a potential finder’s fee in related to the Conditional Payment, as detailed in the press release of June 19, 2024. Under the terms of the transaction, the Liabilities will be assumed by the arm’s length purchaser and will not be transferred to Ranchero or its associates and affiliates. The letter of intent is subject to the Company completing its due diligence. The parties intend that the letter of intent will be replaced by a definitive share purchase agreement between the parties to complete the sale of Paika. Jesus Noriega, interim Chief Executive Officer of Ranchero said, “The sale of Paika is a watershed moment for the Company, substantially reducing the liabilities of the Company and providing a platform from which we can focus our efforts on continuing to exploring the Pinchi Lake nickel project as well as opportunistically looking at new projects.” Loan to Related Party The Company announces that it has agreed to loan up to $30,000 (the “Loan”) to Toro Silver Corp. (“Toro”), a private British Columbia company. The principal amount of the Loan will accrue interest at a rate of 15% per annum. The outstanding balance of the Loan will be repayable upon demand of the Company after December 31, 2024. The Company will advance the Loan to Toro to pay for the audit of Toro’s financial statements. The Loan is evidenced by the terms of a demand promissory note between the Company and Toro. The Loan is subject to the app...