Vista Gold Corp. today announced that it has agreed to extend the due date for the second (and final) US$6.0 million payment for the Los Cardones gold project in Baja California Sur, Mexico by six months to January 30, 2015, and will receive a US$0.5 million cash payment.
On October 18, 2013, we announced the closing of sale of the Los Cardones gold project in Baja California Sur, Mexico, to the Invecture Group ("Invecture") and RPG Structured Finance S.à r.l. (together with Invecture, the "Purchasers") for US$13.0 million. Terms of the sale included US$7.0 million paid at closing and an optional second payment of US$6.0 million due by January 30, 2014, (the "Subsequent Payment"). The Purchasers have the option to elect, in their discretion, not to make the Subsequent Payment, in which case Vista would retain all amounts already paid and the project.
In January 2014, Vista and the Purchasers agreed to extend the due date of the Subsequent Payment to July 31, 2014. As consideration for this extension, the Purchasers agreed to pay Vista an additional US$0.25 million on July 31, 2014, (the "First Extension Consideration"). As Invecture diligently continues to work through the permitting process, Vista and the Purchasers have agreed to an additional six month extension of the due date of the Subsequent Payment to January 30, 2015, (the "Second Extension"). The Purchasers will pay Vista US$0.25 million as consideration for the Second Extension (the "Second Extension Consideration"). The Company expects to receive US$0.5 million (comprising the First Extension Consideration and the Second Extension Consideration) by July 31, 2014.
Vista's President and CEO, Fred Earnest, stated, "We are satisfied that Invecture continues to employ its resources in advancing the Los Cardones gold project and is working diligently to obtain the permits for the project. The US$0.5 million payment we will receive from the Purchasers demonstrates their continued commitment to the project."
Source: http://www.vistagold.com/