RE: El Limon - Gold20 Dec 2023 15:12
Robins look how the $5 million sale was structered when first announced. First payment was a $2.5 million cash payment. Second payment was a $1.5 million promissory note. So effectively $4 million in cash.
Then look how the deal was structered in the end. It can only be descibed as a pathetic and weak deal. The shareprice collapsed for the patient shareholders. So in Red Rock patience seldom pays.
13 May 2014 - RNS
"Payment of consideration will occur in three tranches.
The first tranche of USD 2,500,000 will be payable upon the completion of satisfactory due diligence on the mine and subsequent closing of the transaction, which is expected to be 11 August 2014, should the exclusivity period not be extended.
A second tranche of USD 1,500,000 will be satisfied by the issuance by NMC to Red Rock of a non-interest bearing promissory note (the "PN") due and payable on or before the date that is one year from the closing.
The third tranche of up to USD 1,000,000 will be paid in the form of a 3% royalty on annual net gold sales"
This is how the deal ended:
Highlights:
" Sale Agreement signed with Colombia Milling Limited ("CML")
o Total sale proceeds of USD5m (including USD100,000 previously received and up to USD3m of future royalty payments)
o Initial tranche of USD450k
o Second tranche of USD225k in 9 months
o Third tranche of USD225k in 15 months
o Secured promissory note of USD1m
o Royalty (NSR) payments of USD3M to begin at the earlier of 9 months or 100tpd plant processing and production "