Altamira Provides Update Regarding Metalstream Financing Arrangement on Cajueiro Gold Project, Brazil
Vancouver, British Columbia--(Newsfile Corp. - October 2, 2020) - Altamira Gold Corp.'s (TSXV: ALTA) (FSE: T6UP) (OTC Pink: EQTRF), ("Altamira" or the "Company") wishes to provide an update regarding the previously announced definitive gold forward purchase agreement (the "Agreement") with Metalstream Ltd. ("Metalstream") for the development of the Cajueiro gold project in Brazil.
On 27th April 2020, Altamira announced that it had signed a deal with Metalstream for a US$6M gold forward agreement to finance the construction of a small mine and 1000t/d processing plant at its Cajueiro gold project located in the state of Mato Grosso in eastern Brazil. The original agreement provided for two payments including US$1M on 23rd June 2020 and US$5M 60 days thereafter.
On 18th June 2020, the Company agreed to extend the the time for making that initial payment until 14thJuly with the second payment due date extended until 14th September.
On 15th July 2020, the Company announced that it had been advised by Metalstream that its financing was expected to close by the end of July 2020 and that Metalstream's first payment to the Company would be made shortly thereafter. Altamira did not formally agree to any further extensions for the Metalstream payments beyond 14th July and 14th September. To date Metalstream has failed to make any of its contractural payments to Altamira.
Metalstream is currently in breach of its obligations under the Agreement, and, in addition to other remedies, Altamira may terminate the Agreement. At this time Altamira is considering other financing options in the event that it decides to terminate the Agreement.
Michael Bennett, President and CEO stated, "Whilst the failure of Metalstream to close on their planned financing and meet their obligations with respect to our financing agreement is obviously very disappointing, we have not yet made a decision to terminate the Agreement. However, the ability to terminate the Agreement presents an opportunity for Altamira to explore a number of alternative unsolicited offers of financing. Management has made significant advances in completing the necessary engineering and design work at Cajueiro over the last few months and is confident that these advances will increase the likelihood that the Company will be able to secure funding for this project."