News today. VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 7, 2016) - Precipitate Gold Corporation (the "Company" or "Precipitate" or "PRG") (TSX VENTURE:PRG) is pleased to announce it has reached an agreement to amend the Juan de Herrera purchase agreement whereby Precipitate has the right to acquire a 100% interest in the Juan de Herrera and Los Pinalitos concessions in the Dominican Republic (see news releases dated October 2, 2012 and October 9, 2013). Under the terms of this latest amendment, the Vendors have agreed to restructure the remaining two cash payments totalling $300,000 to a reduced amount of $150,000 in two staged payments of $75,000 each. The amended cash payments required to complete the purchase of the concessions are now as follows:
| | | | | |
| Due Date | Old Payment Terms | New Payment Terms | | Status |
| | Cash | PRG Shares | Cash | PRG Shares | | |
| 2nd Anniversary* | $150,000 | 1,000,000 | $75,000 | 1,000,000 | | Paid |
| 3rd Anniversary* | $150,000 | 1,000,000 | $75,000 | 1,000,000 | | Pending |
*Anniversary of the date the Company was granted the concessions by the Dominican Republic's Director of Mines (see news release dated January 16, 2014). All cash payments are payable in Canadian funds.
The Company must make an additional one-time issuance to the Vendors of PRG common shares valued at $150,000 based on the weighted average trading price of PRG's shares on the Exchange during the 10 trading days immediately prior to the Vendors' notice of election to be issued such shares. Such notice must be received by Precipitate no sooner than July 31, 2016 and no later than the third anniversary referred to above.
In addition, the amending agreement reduces the parties' mutual area of interest from five (5) miles to one (1) kilometer extending from the outer concession boundaries of the Juan de Herrera and Los Pinalitos concessions.
Precipitate's President & CEO, Jeffrey Wilson, stated, "We are pleased with this amendment as it reduces the cash obligations required to complete the purchase which in turn leaves increased working capital for the next phases of ground work and exploration. We thank the Vendors for their cooperation in facilitating this change as we continue to explore and advance our holdings in the emerging Tireo Gold Camp of Dominican Republic."
The cash and shares related to the 2nd Anniversary payment have been paid to the Vendors. Shares issued with respect to this payment will be subject to a four month hold period expiring May 8, 2016.
The amendment and the issuance of Precipitate's common shares thereunder are subject to the approval of the TSX Venture Exchange.
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