23 December 2019 -
Serabi Gold Plc (“Serabi” or the “Company”) (AIM:SRB, TSX:SBI), the Brazilian focused gold exploration and development company announces that the Company and
Equinox Gold Corp. (the parent company of
Anfield Gold Corp.) agreed, on 20 December 2019, to extend the final payment date for the deferred consideration due in respect of the acquisition of Chapleau Resources Ltd (“Chapleau”), a wholly-owned subsidiary of
Anfield Gold Corp. (“Anfield), and which holds the Coringa gold project.
Serabi completed the acquisition of Chapleau on 21 December 2017 (“Closing”) and a final payment of US$12 million (“Deferred Consideration”) was due on the earlier of either the first gold being produced or 24 months from the date of Closing. The Deferred Consideration will now be settled on 31 March 2020 or if earlier, completion of any new financing arrangement by Serabi. Interest will be payable on the outstanding sum at the rate of 10% per annum and will be settled at the same time as the Deferred Consideration payment is made.
As at 30 September 2019, the Company’s gross cash holdings totalled US$13.4 million. The Company intends to raise additional financing in Q1 2020 which, in conjunction with projected cash flow from Palito and current cash holdings, will fund inter alia the initial capital requirements for the next stage of development of the Coringa Project and settle the Deferred Consideration. Discussions are already underway with potential financing partners and the Directors anticipate funding being available in Q1 2020 (following any approvals if applicable at any shareholder meeting of the Company).
Enquiries:
| Serabi Gold Plc | |
| Michael Hodgson | Tel: +44 (0)20 7246 6830 |
| Chief Executive | Mobile: +44 (0)7799 473621 |
| | |
| Clive Line | Tel: +44 (0)20 7246 6830 |
| Finance Director | Mobile: +44 (0)7710 151692 |
| | |
| Email: contact@serabigold.com | |
| Website: www.serabigold.com | |
| | |
Beaumont Cornish Limited
Nominated Adviser and Financial Adviser | |
| Roland Cornish | Tel: +44 (0)20 7628 3396 |
| Michael Cornish | Tel: +44 (0)20 7628 3396 |
| | |
Peel Hunt LLP
UK Broker | |
| Ross Allister | Tel: +44 (0)20 7418 9000 |
| James Bavister | Tel: +44 (0)20 7418 9000 |
Copies of this announcement are available from the Company's website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.
