logo-loader
viewElement 25 Ltd

Montezuma Mining Company extends Grosvenor Gold's option to acquire Peak Hill gold project

au_agreement_grayscale350_519593150b6e4.jpg

Montezuma Mining Company (ASX:MZM) has reached an agreement with Grosvenor Gold, a wholly owned subsidiary of Resource and Investment NL, to extend until 29 November 2013, the option to acquire Peak Hill Metals, that owns the Peak Hill gold project in Western Australia.

Grosvenor will pay Montezuma Mining a $50,000 extension fee and will also reduce the exercise price of the options portion of the consideration due to Montezuma if Grosvenor elects to acquire Peak Hill, to $0.35 from $0.75 per option.

Both companies had entered into an options agreement last year under which Grosvenor was to pay an initial option fee of $100,000 for an exclusive option until this March.

Grosvenor could exercise the option by paying Montezuma $2.8 million in cash and issuing 8,400,000 fully paid ordinary shares and 2.1 million options, now at an exercise price of $0.35.

Grosvenor is also to give Montezuma a 1% Gross Royalty, capped at $1M, on all revenue it receives from production from the Peak Hill Project.

The option deal has already been extended once previously.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Element 25 Ltd

Price: 0.405 AUD

ASX:E25
Market: ASX
Market Cap: $39.84 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Element 25 Ltd named herein, including the promotion by the Company of Element 25 Ltd in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Element 25 'well funded' as it progresses PFS on Butcherbird manganese project

Element 25 Ltd's (ASX:E25) Justin Brown sits down with Proactive's Andrew Scott while at Mines and Money in London 2019. The company's flagship asset is the Butcherbird manganese deposit, which has been described as Australia’s largest onshore manganese resource. ''The PFS is around 90%...

on 27/11/19

2 min read