- Chakana Copper Corp. (PERU) reaches a binding agreement with Condor Resources Inc. relating to the Soledad Project
- A final payment of US$4.42 million dollars was meant to be due to Condor on April 23
- Both parties have agreed to extend and amend the terms of the option
- Chakana has the option of paying US$2.8 million and issuing 9.48 million common shares
- Or it can make payments spread over a three-year course
- Chakana Copper Corp. (PERU) is unchanged, trading at $0.19 per share as of 1:27 p.m. ET
Chakana Copper (PERU) has reached an agreement with Condor Resources to amend the terms of an option agreement for the Soledad Project.
The Soledad Project is located in the Ancash region of Peru.
Under the existing agreement, a final payment of US$4.42 million dollars was originally due to Condor on April 23. Both parties have agreed to extend and amend the terms of the option to provide that Chakana may complete the exercise of the option by paying US$2.8 million and issuing 9.48 million common shares to Condor’s Peruvian subsidiary prior to June 23.
Alternatively, Chakana may make the following cash and share payments to Condor’s Peruvian subsidiary over the next three-year period:
| Date | Cash Payment | Shares in C$ Equivalent |
| On or prior to June 23, 2022 | US$800,000 | C$200,000 |
| On or prior to June 23, 2023 | US$1,000,000 | C$200,000 |
| On or prior to June 23, 2024 | US$1,000,000 | C$200,000 |
| On or prior to June 23, 2025 | US$1,425,000 | C$400,000 |
The amounts of the share payments are subject to adjustment in the event of early or late payment.
In addition, Condor has agreed to certain voluntary resale restrictions on the shares of Chakana to be issued to Condor, with periodic releases over an 18-month period.
Chakana has also agreed to make a payment of US$200,000 to Condor’s Peruvian subsidiary by this Friday.
President and CEO of Chakana, David Kelley, stated,
“To date we have only tested 15 per cent of the 122 targets currently defined on the project, leading to an initial inferred resource hosting 191,000 ounces of gold, 11.7 million ounces of silver, and 130 million pounds of copper as published on January 11, 2022.”
Chakana Copper Corp. (PERU) is unchanged, trading at $0.19 per share as of 1:27 p.m. ET.
