RE:The TermsThe description of the kill fees of 20% of purchase price i.e. 4 million is framed almost entirely in terms of SCZ not complying. Beyond a single short clause there is no mention of Zimapan's owner backing out.
Does this make sense? I mean if Zimapan's owner sees silver going over $30 and well beyond--which it may well do--it is possible that a $4 million penalty for killing the deal makes sense.
If in December the mine is worth $5 mil or more than $24 million ($20mil sale price plus $4mil kill fee) then Zimapan's owner has incentive to back out.
The language of the announcement is all about SCZ making the payments by Dec. 15 or later with additional payments.
Moreover, that language gives the impression that if SCZ pays up then the deal is done. I wonder if that's the case.