TIME - YERGO caption below ( indicates ) YERGO is with a private Argentine.
Which can sometimes work to an advantage.
It's been awhile since Portofino initially secured - each of the SALARS...
TIME....can have that funny effect...it sometimes creates desperation.
A tool that can be used to rearrange " original deals '.
If one didn't want to wait the entire 4 year - payment period...
Sometimes a vendor would TAKE LESS $$$$ inorder to reap - quicker dollars in hand.
Portofino's Hombre SALARS, Del Condor + Purcara - have a revised contract of,
$400/k + 1/mil shares...
QUESTION BECOMES
What would a private vendor want in $$$ if the contract was EXCELLERATED with a quicker
timeline payout ? All depends if the Vendor is, desperate for $$$$$.
Given world issues...such could be used as...a vantage.
POTENTIAL BARTERING TERMS ?
What does Portofino have in it's corner as a vantage ?
1) Time = can make the vendor wait till end of contractual term, paying minimums.
2) Shares can be used to offset cash amounts = use tadcmore shares to lessen cash - needed.
3) Royalty Stream upon SALARS put into production.
Given the circumstances...not much owning on the SALARS, a royalty stream could be
Worked with...xxxx amount on first 2 years of production.... Such could offer a double value
whereas, the vendor could reap 2x thier expected - while - Portofino could arrange a small
cash offering + shares + 2 year royalty @ xxx amount .
4) Portofino would have to have something tangible in place, whereas, the vendor would feel
It's a more promising offer....what would suffice ?
Portofino saying....they have larger interests, and it " might " look good nearterm...
to bring the SALARS to production. ( hypothetical )
5) Portofino would have less $$$ to dish out, perhaps offer 2/mil shares and xxx value royalty
payout based on production tonnage and not exceeding 2/year term. Such would also favor
A larger interest knowing that the royalty stream in not for entire...LOM. ( life of mine )
6) WHAT IF...Hombre vendor agreed to $100/k + 2/mil shares + limited term royalty ?
One doesn't know if one doesn't ask.
$500/k share offering could see a small amounts of monies ( subtracted ) and still, swing the
SALARS into full ownership of, Portofino still having sufficient funds to move Redlake forward...it's all about skill sets.... art of, ironing out a deal.
Sometimes vendors....desperately....want cash ASAP....
Sometimes...it's the best time to crack deals...
Wink.
HERE'S YERGO AGREEMENT ( examples above could also be applied to YERGO )
To acquire a 100% interest in the properties, Portofino has agreed to make escalating annual payments to the vendor over a 48-month period totalling US$370,000 as follows:
a) US$10,000 on signing agreement-(paid)
b) By the 12 month anniversary of TSX-V approval- US$20,000,
c) By the 24 month anniversary of approval- US$70,000,
d) By the 36 month anniversary of approval- US$120,000
e) By the 48 month anniversary of approval- US$150,000
Just ideas...
Nothing more, Nothing less.