May 15 MD&Athe punch line is that romanex wants to terminate the deal even though gya already has $ in the project
romanex has all the permits
this ain't over yet
In March 2020, the Company updated the stakeholders on the Marudi Gold Project. Effective November 1, 2016, the Company entered into share purchase agreement (the “Purchase Agreement”) pursuant to which it agreed to acquire all of the outstanding share capital of Romanex Guyana Exploration Ltd. (“Romanex”). Romanex controls the rights to the mining license which comprises the Marudi Gold Project (the “Project”) located in Guyana, South America. In consideration for the acquisition of Romanex, the Company agreed to complete a series of cash payments and share issuances to the principals of Romanex. While the transaction contemplated by the Purchase Agreement was consummated on March 3, 2017, the Company remained obligated to complete cash payments to the principals of Romanex, as well as retire existing payables of Romanex, and maintain the Project in good standing. Since consummation of the transaction, the Company has worked with the principals of Romanex to extend the deadlines for the completion of cash payments in order to meet the working capital needs of the Company. While discussions were ongoing until recently, the Company has now been advised by the principals of Romanex that they are unwilling to entertain further extensions. The Company views the current pandemic surrounding the novel coronavirus (COVID-19) and the resulting global financial crisis as an event of force majeure, which the Company invoked on March 18, 2020, necessitating an extension of the Company’s obligations surrounding the payment of consideration to acquire Romanex. The principals of Romanex have advised that they disagree with this assessment, and it is their position that the Purchase Agreement has been terminated. The principals have delivered a notice of termination of the Purchase Agreement, dated March 21, 2020, to this effect. While the Company is continuing to assess options for enforcing its rights in respect of Romanex and the Purchase Agreement, and recouping investments made to date in advancing the Project, at this time the Company is unable to control the affairs of Romanex and the conduct of activities at the Project. The Company will provide a further update regarding the status of the Purchase Agreement, and its relationship with Romanex, once it has had an opportunity to assess available options and as the situation develops.
In April 2020, the Company extended the deadline for the completion of an initial payment owing to the Company in connection with a gold forward purchase agreement (the “Forward Agreement”) previously entered into by the Company, effective January 24, 2020. Under the terms of the Forward Agreement, the Company had agreed to deliver 30,000 ounces of gold, in consideration for an investment of US$9,000,000 to be utilized in the development of the Marudi Gold Project (the “Project”) located in Guyana, South America. The investment was to be made in two parts by an arms-length investor (the “Investor”) The initial payment of US$2,000,000 was due and owing by April 14, 2020, with the balance owing within thirty days of the registration of a royalty interest in the Project in favour of the Investor. Due to the current global pandemic surrounding the novel coronavirus (Covid-19) and the resulting financial crisis, the Investor has invoked force majeure on the Forward Agreement and an extension to the payment deadline has been request. The Company has accepted this request and an extension has now been granted. Under the terms of the extension, the Company has agreed to extend the deadline for completion of the initial payment through until July 14, 2020. All other terms of the Forward Agreement remain in effect. The Investor’s desire and intent is to complete the payments and the Investor is confident that the extension will provide sufficient time to allow the global pandemic to subside. Further, the Company is confident the dispute surrounding control of the Project, and Romanex Guyana Exploration Ltd.(“Romanex”) can also be resolved during this period. The consummation of the transaction under the Forward Agreement, and the receipt of any investment, is contingent on the Company retaining control of the Project, and Romanex. For further information regarding the Forward Agreement, and the dispute surrounding control of the Project, and Romanex, readers ar