Revised Project Acquisition Terms Pave Way For Significant Growth

Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to advise that it has agreed revised terms and conditions for its purchase of the Labyrinth gold project in Canada from G.E.T.T. Gold Inc (TSXV: GETT)(‘GETT’).

The new terms are favourable for both parties and enable Labyrinth to focus on growing the Labyrinth Resource, which stands at 500,000oz at 5gpt1.

The original terms and conditions of the Project Acquisition Agreement were set out in Labyrinth ASX Announcements dated 2 September 2021, 9 November 2022 and 3 April 2023.

The key revised terms are:

• Delivery of Payable Gold to GETT over a 48-month period commencing 8 November 2021 will now only be triggered upon commencement of profitable Production Activities at the project in the future.
  
• Payment of the remaining acquisition cost previously due 31 March 2023, being CAD$1 million, is deferred and divided into two equal payments of CAD$500,000 (plus accrued interest at a simple rate of 7% per annum from 30 November 2023) on or before 30 April 2023 and 29 September 2023.
• Delivery of 450oz of Payable Gold to GETT previously due 31 March 2023, is deferred until the earlier of 31 December 2023 or the date on which the Company publicly announces a mineral Reserve estimate and can be delivered via the issue of fully paid ordinary shares in Labyrinth of the cash equivalent of 450oz.

Detailed revised terms included at the end of this announcement.

Labyrinth Chief Executive Matt Nixon said: “The amended terms deliver substantial benefits to both companies because they enable Labyrinth to focus on growing the high-grade Resource at the Labyrinth Gold Project. This will in turn ensure we unlock the full value of the project for the benefit of both companies.

“With the gold payment schedule now only commencing once the project is delivering profitable ounces, capital can be used to create value through the next phase of diamond drilling. This program is aimed at increasing the maiden 500,000oz JORC 2012 Mineral Resource established in September last year. The pathway to future production has been simplified.

“I would like to acknowledge the positive approach to negotiations by GETT, which enabled an outcome that will bring value to the shareholders and stakeholders of both Companies.”

Click here for the full ASX Release

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