Revised Terms of Labyrinth Acquisition Agreement Provide a Strong Start to 2024

Labyrinth Resources Limited (ASX: LRL) (‘Labyrinth’ or ‘the Company’) is pleased to advise that it has finalised negotiations with G.E.T.T. Gold Inc (TSX.V: GETT) (‘GETT’) regarding title to the Labyrinth Mine and payment terms. The payment of the final CAD$500k acquisition obligation was completed on 5 October 2023, triggering the issue of the hypothec and title transfer which is now being finalised.

---

The original terms and conditions of the Project Acquisition Agreement were set out in the Company’s ASX announcements dated 2 September 2021, 9 November 2022, 3 April 2023 and 1 May 2023.

Following negotiations, the Company and GETT have entered into a Side Letter amending the terms of section 2.6 of the Project Acquisition Agreement in respect of the obligation to deliver 450 ounces of Payable Gold as part of the Physical Gold Payment by 31 December 2023.

The parties have agreed that:

(a) the Company will provide the 31 December 2023 payable gold payment to GETT to the equivalent of 200 ounces based on the prevailing 28 day moving averagegold price in the form of cash, shares or some combination thereof; and

(b) the remaining 250 ounces of Payable Gold is deferred and added to the remaining Payable Gold (4,050 ounces) paid upon profitable production from the Labyrinth Gold Project in accordance with the payment schedule set out in Section 2.6 of the Project Acquisition Agreement.

The reduced 31 December 2023 Gold Payment to GETT will be made in the coming weeks.

Click here for the full ASX Release

This article includes content from Labyrinth Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.