Precipitate Gold Corp. (
TSX: V.PRG,
Stock Forum) has reached an agreement with 0945044 B.C. Ltd. to amend the purchase agreement whereby Precipitate has the right to acquire a 100% interest in the Juan de Herrera and Higos Blanco concession applications in the Dominican Republic.
Under the terms of the amending agreement, the parties have agreed that all remaining cash and share payment obligations will be deferred 12 months.
According to the
Precipitate Gold press release, under the terms of the original agreement, Precipitate was obligated to pay $90,000 and 1.0 million shares to the vendor upon receipt of notice of concession grant. The amending agreement defers that payment, and all subsequent payments in the payment schedule by 12 months. There is no minimum exploration expenditure obligation until the first anniversary of the date of receipt of the pending Juan de Herrera concession grant by the Dominican government.
"We thank the vendors for their cooperation in facilitating this change as we seek to further explore the Juan de Herrera concession in an attempt to identify targets and advance the property to an initial drill stage,” said Jeffrey Wilson, President and CEO. “We have now renegotiated and amended all of the company's current property option agreements such that the company has secured its right to acquire 100% of all property assets while eliminating any near term cash payment obligations."
As noted in the company's June 11, 2013 news release, Precipitate's main Juan de Herrera concession application has attained official 'Extracto' status from the Dominican government, an important step preceding final concession grant.
Extracto status permits applicants to initiate the drill permitting process, and Precipitate has submitted a diamond drilling application for the Ginger Ridge zone at Juan de Herrera. This drill application includes provisions to drill from up to 15 areas, testing the zone's gold enriched multi-element soil geochemical anomaly that measures more than 1,000 metres long and up to 400 metres wide. Drill testing, if warranted, would follow an Induced Polarization geophysical survey planned for Ginger Ridge following formal concession grant.
In addition, Precipitate has added to its Dominican property asset base by submitting a concession application for the newly acquired Toro Negro concessions. The application covers an estimated 2,100 hectares of prospective Tireo volcanic lithologies located in the south central region of the country, and is road accessible. This greenfields prospect will see its first modern exploration work as part of the company's pending Juan de Herrera exploration.
Precipitate is a mineral exploration company focused on exploring and advancing its mineral property interests in the Tireo Gold Trend of the Dominican Republic and Sonora State, Mexico.
On Wednesday, Precipitate was trading at $0.10 a share. The company had a market cap of $2.9 million, based on 28.8 million shares outstanding.