Here's some news!!!St. Elias says Geneva in default of Vilcoro agreement
2009-10-21 14:45 ET - News Release
Mr. Lori McClenahan reports
ST. ELIAS GIVES FORMAL NOTICE TO GENEVA RE VILCORO PROPERTY OPTION AGREEMENT
St. Elias Mines Ltd. has given a notice of default to Geneva Resources Inc., pursuant to the property option agreement dated Jan. 22, 2007, and its amendments dated Dec. 1, 2007, March 28, 2008, and June 4, 2008, between St. Elias and Geneva, with respect to the Vilcoro gold property located in central Peru.
Under the terms of the agreement, St. Elias granted Geneva an option to acquire a 66-per-cent interest in the Vilcoro gold property in consideration of Geneva making cash payments totalling $350,000 to St. Elias, Geneva issuing 50,000 shares to St. Elias and Geneva incurring $2.5-million in exploration expenditures. The notice was given to Geneva because Geneva failed to meet certain obligations set forth in the agreement, specifically as follows:
- $200,000 to be paid by Geneva to St. Elias on or before Jan. 22, 2009;
- Cumulative exploration expenditures of not less than $1.25-million to be incurred and paid for by Geneva on or before Jan. 22, 2009.
In accordance with the terms of the agreement, should Geneva fail to make the payment of $200,000 to St. Elias within five business days of the date of the notice, the agreement shall be deemed to have terminated on the day following the last day provided for the payment. Should Geneva make the payment of $200,000 to St. Elias within five business days, Geneva will also be required to make a cash payment to St. Elias in an amount equal to the deficiency in the exploration expenditures and will have 30 days from the date of the notice to make such payment. Any cash payment so made shall be deemed to have been exploration expenditures duly and properly incurred in an amount equal to the cash payment