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Wealth Minerals Ltd. (TSXV:WML) announced that it’s renegotiated its option to acquire the Mexico-based Valsequillo silver project.
Wealth Minerals Ltd. (TSXV:WML) announced that it’s renegotiated its option to acquire the Mexico-based Valsequillo silver project. According to the company, the renegotiation solidifies its control of the project, which it believes will become a priority for it in the next two years.
As quoted in the press release:
Wealth has successfully renegotiated the original 2012 option agreements under which it held the option to acquire a 100% interest in the Valsequillo property from two private Mexican individuals. The renegotiated agreements provide for lower overall option payments spread over a longer period, and are primarily tied to the Company obtaining the necessary surface access. Under the renegotiated agreements, the Company can acquire a 100% interest for a total consideration of US $6.0 million over a 90-month (7.5 years) period. The option payments are now tied to both the signing of the agreements (“Signing Date”) and the date the Company secures the required surface access rights* (“Access Date”). Details of the renegotiated option agreements (collectively) are as follows (all amounts are US Dollars):
* Wealth will negotiate surface access for a period up to 6 months and if unsuccessful, the matter will be referred to the Director General of Mines to enforce an easement as allowed for within the Mexican Mining Law. The payment of US$50,000, due on the one year anniversary of signing, will be accelerated or delayed in line with the granting of the easement. The timing of the payment due on the two-year anniversary will not be changed.
** Once surface access rights have been granted, the second set of option payments will begin, tied to the Access Date. This provision was negotiated to protect the Company against any delay in securing surface access rights.
Click here to read the full Wealth Minerals Ltd. (TSXV:WML) press release.