Cerro Grande Mining Corporation Announces Completion of the Acquisition of the Assets relating to the Pimentón Copper Gold Mining Project

Nachrichtenquelle: globenewswire
01.12.2020, 19:22  |  145   |   |   

TORONTO, Dec. 01, 2020 (GLOBE NEWSWIRE) -- Cerro Grande Mining Corporation (the “Company” or “CEG”) (CSE:CEG) announces that, further to its news releases of July 15 and September 14, 2020, CEG’s Chilean wholly-owned subsidiary Minera Til Til SpA (“Til Til”) today entered into the Asset Purchase and Contracts Assignment Agreement (the “APA”) with Minera Tamidak Limitada (“Tamidak”) pursuant to which Til Til has acquired from Tamidak the mining concessions and other assets covering the Pimentón Copper Gold Mining Project owned by Tamidak as well as Tamidak’s rights and obligations under the Exploration and Option to Joint Venture Agreement (the “FQM Agreement”) entered into on or about April 27, 2020 between Tamidak and FQM Exploration (Chile) S.A. (“FQM”), a Chilean subsidiary of First Quantum Minerals Ltd. Tamidak is a private Chilean company owned by David Thomson and his sons.  

The Pimentón Copper Gold Mining Project covers 3,121 hectares located approximately 120km northeast of Santiago in the Andes mountains in Chile, and hosts the Company’s former Pimentón gold mine which closed down in May 2017 and was subsequently forfeited to the liquidator when the Company’s subsidiary, Compañía Minera Pimentón, entered into voluntary bankruptcy proceedings in June 2017. Tamidak acquired the Pimentón Copper Gold Mining Project in those bankruptcy proceedings on June 25, 2018.

Pursuant to the APA, CEG has paid, on behalf of Til Til as purchaser, the first installment in the amount of $1,300,000,000 Chilean Pesos (CDN$2,202,755.14) of the total $3,900,000,000 Chilean Pesos purchase price (the “Purchase Price”) payable thereunder (approximately CDN$6,608,265, based on the nominal exchange rate of the Chilean peso to the Canadian dollar determined on November 30, 2020 as published by the Central Bank of Chile) by issuing 44,055,102 common shares of the Company to Tamidak at an issuance price of CDN$0.05 per share. The shares issued to Tamidak are subject to a hold period expiring on April 2, 2021.

Pursuant to the APA, each of the second and third installments of the Purchase Price, each in the amount of $1,300,000,000 Chilean Pesos, is due on the date that is not more than 18 months and 36 months from today, respectively, and is payable in cash or its equivalent in common shares of the Company, as Tamidak may elect in its sole and absolute discretion, at a price per share equal to the greater of (A) the simple average of the closing price per CEG common share on the CSE for the 10 consecutive trading days ending on the date immediately prior to such payment being made; and (B) CDN$0.05 per share (or such other minimum price per share as may be in effect pursuant to the policies and rules of the CSE at the relevant time). In case of payments to be made in common shares of the Company as aforementioned, the number of CEG common shares issuable shall be determined based on the nominal exchange rate of the Chilean peso to the Canadian dollar determined on the day before the applicable payment as published by the Central Bank of Chile.

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Cerro Grande Mining Corporation Announces Completion of the Acquisition of the Assets relating to the Pimentón Copper Gold Mining Project TORONTO, Dec. 01, 2020 (GLOBE NEWSWIRE) - Cerro Grande Mining Corporation (the “Company” or “CEG”) (CSE:CEG) announces that, further to its news releases of July 15 and September 14, 2020, CEG’s Chilean wholly-owned subsidiary Minera Til Til SpA …

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