Dec 9 2013
Ryan Gold Corp. ("Ryan Gold" or the "Company") announces that it has amended the option agreement (the "Agreement") with respect to the sale of the Company's Los Jarros and Jarros Norte Properties (the "Properties") in Mexico. Under the current closing terms Minera Frisco SAB de CV ("Minera Frisco") has purchased the Properties by making a final US$1.35 million payment to Minera Valdez SA de CV ("Minera Valdez"), the Company's 100% owned subsidiary.
In August 2010, Minera Valdez and the Company entered into an Agreement with AuRico Gold Inc. ("AuRico") to sell the Properties for US$2.5 million, with payments staged over 4 years. Over the first two years of the Agreement, AuRico made US$400,000 in payments. A payment of US$400,000 was owed in August, 2013, and $US1.7 million was to be owed in August, 2014. In addition, should commercial production be initiated on the Properties, Minera Valdez would be paid a royalty equal to 2% of the Net Smelter Returns ("NSR") from such production. If cumulative royalty payments reached US$2.5 million, the NSR would be reduced to 1%. In December, 2012 Minera Frisco acquired a number of assets from AuRico, including the option to purchase the Properties.
Ryan Gold and Minera Frisco have agreed to amend the Agreement as follows: rather than making two payments totaling US$2.1 million by August 2014, Minera Frisco has made one US$1.35 million payment. The NSR remains in place. This final payment concludes the sale of the Properties.
Source: http://www.ryangold.com/s/Home.asp