The Terms Management has until Dec. 15 to pay 23.2 million to complete the Zimapan acquisition. Since both parties have agreed to terms and the deadline is Dec. 15 i don't see cause for this delay coming from either parties. I suspect the last paragraph hints at what's going on...red tape from the TSX Venture Exchange. But really who knows?
Here are excerpts from the announcement:
'has entered into a legally binding term sheet...to acquire (the "Transaction") the Zimapan property and related assets (the "Zimapan Mine") located in Zimapan, Hidalgo State, Mexico for total consideration of US$20 million (plus applicable Mexican Value Added Tax of US$3.2 million) (the "Purchase Price").
'...if the parties have not executed definitive agreements relating to the Transaction, and completed the Transaction, on or before December 15, 2020 (the "Closing Deadline"), the party responsible for such lack of performance must pay the other party a break fee in the amount of 20% of the Purchase Price, subject to the extension provisions described below. Accordingly, if the Company is unable to secure funding of the entire Purchase Price or is otherwise unable to complete the Transaction by the Closing Deadline or such later deadline as may result from one or more extensions granted by Minera Cedros (as described below), then Carrizal will be required to pay a break fee equal to 20% of the Purchase Price to Minera Cedros.
If Carrizal pays all outstanding royalties owing to Minera Cedros in connection with the existing lease of the Zimapan Mine, currently amounting to approximately US$1.05 million, on or before October 31, 2020 and subject to Carrizal maintaining a guaranty through a bank letter of credit or similar instrument in favor of Minera Cedros in the amount of US$1 million with an expiry date of February 15, 2021 or later, then Carrizal has the right to request an extension of the Closing Deadline to January 31, 2021 and can thereafter further request an extension of the Closing Deadline to March 31, 2021 if such guaranty is increased to US$2 million and the Purchase Price is increased by 10% after December 15, 2020.'
'Completion of the Transaction remains subject to a number of conditions, including receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange ("TSXV") to the Transaction which will constitute a "Fundamental Acquisition" pursuant to TSXV Policy 5.3.'