Element79 Gold (CSE:ELEM) has restructured the remaining payments related to its acquisition of the Lucero Project in Peru from Condor Resources (TSX-V:CN).
The new payment structure represents the fourth amendment to the agreement the companies originally signed in late 2020.
Under the original agreement, Element79 was to pay Condor at least US$3.5 million ($4.96 million) over five years. The amount could rise to US$6 million should gold prices hit certain milestones.
Element79 has since made multiple payments, but in 2024 it had to reschedule a US$1 million payment due that year to 30 June 2025. The amount was also increased to US$1.1 million.
This new agreement is designed to resolve that payment, which Element79 subsequently missed. Instead, the company has agreed to pay a US$100,000 non-refundable deposit and a US$1 million payment at the closing date, targeted for the end of this month.
The amendment also outlines two settlement options for the remaining consideration: an accelerated payment of US$4.05 million by 31 July 2027, or four milestone-linked payments totalling US$6 million.
The milestone payments will track Lucero’s actual development path — community agreement, permitting, mill development, and production — with fixed outside dates of 2028, 2029, 2031, and 2033.
“This agreement gives Element79 a clear, defined path forward on the remaining acquisition obligations at Lucero,” says CEO Michael Smith.
“Lucero remains an important asset for Element79, and resolving the legacy payment structure removes a significant overhang as we determine the right way to advance it,” he adds.
Located in the Chachas district of Arequipa in Peru, the project comprises the past-producing Shila mine and surrounding mineral concessions.
In June, the company entered into a memorandum of understanding (MoU) to sell the Lucero Project to a private buyer for US$2 million, but the transaction did not close by the agreed outside date.
Element79 Gold is a Canadian precious metals company focused on exploring and developing its portfolio of high-potential gold projects.
Write to Jackson Chen at Mining.com.au
Image: Element79 Gold
