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Southern Silver Exploration Corp. (TSXV:SSV,FWB:SEG) entered into an amending agreement with the Optionor of the Cerro Las Minitas property in Mexico to reduce the option payment due on May 18, 2013 from $1 million to $250,000. This will also extend the balance of the purchase price of $1.75 million to be paid periodically with the last payment due in March 2015.
As quoted in the press release:
Freeport-McMoRan Exploration Corporation (‘FMEC”) has been funding and directing Southern Silver’s subsidiary, Minera Plata del Sur, S.A. de C.V. (“MPS”) to explore the property pursuant to an earn-in agreement since October 2012 and has advanced the $250,000 option payment together with a previous payment of $750,000 due November 18, 2012, together with applicable IVA taxes with such amounts being credited toward potential expenditures of $25 million required to earn an indirect 70% interest in the property.
Southern Silver Exploration Corp. President, Lawrence Page said:
he renegotiation of the option agreement provides greater flexibility to explore the property systematically within a reasonable time frame. $2.25 million has been paid on the $4 million purchase price to earn a 100% unencumbered interest in the property with FMEC having contributed $1 million as a credit towards its earn in threshold. FMEC may elect to make additional payments as they become due and as FMEC continues its exploration program.
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