It's official...Sneaky move issuing this NR apparently only to Stockwatch (paid access), after market on Friday. IBasically in exchange for elimiating the debt to Romanex, GYA walks away, returns whatever interest they'd earned in the project. End result is a total waste of time and money since GYA's inception as a pubco. Well done. This would also mean the Metalstream deal is also dead.
As an aside, anybody keep track of the amount of financings in the gold space in 2020? Using Covid as an excuse to explain why GYA failed to meet it's obligations is ridiculuous and not true. Although it did not help them in 2020, GYA stopped paying Romanex well before the pandemic hit.
NR:
Effective Nov. 1, 2016, the company entered into a share purchase agreement pursuant to which it agreed to acquire all of the outstanding share capital of Romanex Guyana Exploration Ltd. Romanex controls the rights to the mining licence which comprises 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.
As a result of the current pandemic surrounding the novel coronavirus (COVID-19) and the global financial crisis that ensued in March of this year, as well as delays associated with financing the gold forward purchase agreement, the company failed to meet its obligations surrounding the payment of consideration to acquire Romanex. The company has now reached an agreement with the original shareholders of Romanex, in which the company has agreed to return its interest in Romanex to those shareholders in exchange for a release of all outstanding obligations of the company related to the acquisition of Romanex. As a result, the company no longer has an interest in the project or Romanex, and any associated liabilities or obligations have been extinguished.