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Vendetta Obtains Extension to the Pegmont Pre-Paid Royalty Payment to Earn 100% of Pegmont Lead-Zinc Project
Vancouver, British Columbia--(Newsfile Corp. - November 1, 2018) - Vendetta Mining Corp. (T...
About this update from Vendetta Mining Corp.
[{"type":"text","content":"Vendetta Obtains Extension to the Pegmont Pre-Paid Royalty Payment to Earn 100% of Pegmont Lead-Zinc ProjectVancouver, British Columbia--(Newsfile Corp. - November 1, 2018) - Vendetta Mining Corp. (TSXV: VTT) (\"Vendetta\" or the \"Company\") is pleased to announce the signing of an amendment to its agreement with the vendor of the Pegmont Project, Pegmont Mines Ltd. (\"Vendor\").To obtain 100% of the Pegmont Project the Company had to complete certain drilling milestones and make option payments and a pre-paid royalty payment, in doing so the Company would also obtain an AU$5,250,000 credit against future royalties.To date, the Company has completed all necessary drilling requirements, work commitments and payments under the Option Agreement. The final AU$1 million option payment and the AU$3 million pre-payment of future royalties are due on November 6, 2018.The Company will pay the Vendor the final AU$1 million cash option payment by the due date.The Vendor has granted the Company an extension to the AU$3 Million payment, a pre-payment of future royalties from the Pegmont Project subject to certain additional payments as described below.The Company is assessing several financing options for the pre-paid royalty, the extension provides time for that process to be completed, which includes in some cases, time needed for third parties to complete due diligence.The Company and the Vendor will now seek indicative approval from the Queensland Minister for Natural Resources, Mines and Energy for transfer of the project to Vendetta.Extension Terms The Option is not exercised until the Pre-Paid Royalty and any additional payments, as defined below are made. In the event the Pre-Paid Royalty is paid between November 1 and November 29, 2018 the Company will make an additional payment of AU$50,000 and the Companies credit against the future royalties will be reduced from AU$5,250,000 to $5,000,0000.In the event the Pre-Paid Royalty is not paid by November 30, 2018 the Company will make a payment of AU$100,000 on December 1, 2019 and in doing so the Vendor has been granted an extension to March 31, 2019.In the event the Pre-Paid Royalty is not paid by March 31, 2019, the Company will pay an additional AU$300,000 on April 1, 2019 and in doing do so the Vendor has granted an extension to May 6, 2019.In the event the Pre-Paid Royalty is not ...