Clueless management do (did) it again...
On Dec. 4, 2019, Cascadero, through Cascadero Minerals Corp. (CMC) and Cascadero's Argentine subsidiary, Salta Geothermal SA (SGSA), entered into an exploration and development earn-in agreement with Golden Minerals Company and its Argentine subsidiary, Colque Exploraciones SA, through which SGSA granted Golden the exclusive right to control and perform mining exploration in La Sarita Este mine (file No. 18.060). At the execution date of the earn-in agreement, CMC received $150,000 (U.S.).
On July 30, 2020, the company announced that it became aware of an agreement dated Sept. 3, 2015, with an Argentine drilling contractor, pursuant to which the company agreed to pay up to a maximum amount of $1-million (U.S.) in the event of the sale of part, or whole, of any of the mining concessions in the company's Taca Taca group. The Taca Taca group, for the purposes of this contingent agreement, consists primarily of: (a) Sarita Sur; (b) Sarita Este; (c) La Sarita I; (d) La Sarita II; (e) the 50-per-cent interest over Francisco 1; (f) the 50-per-cent interest over Francisco 2; (g) the 33.3-per-cent interest over Desierto I; and (h) the 33.3-per-cent interest over Desierto II.
The company and contractor have agreed that the earn-in agreement constitutes a sales transaction as described in the contingent agreement and the contractor is entitled to 50 per cent of the $150,000 (U.S.) received, creating an obligation of $75,000 (U.S.) to the contractor. The liability will be paid in 10 monthly instalments starting immediately.
The $75,000 (U.S.) total payment will be credited toward the maximum contingent liability amount of $1-million (U.S.). After the $75,000 (U.S.) has been paid, the contingent liability obligation will be reduced to a maximum amount of $925,000 (U.S.).