Friday, September 19, 2014 6:46:57 PM
Terms:
•a 2% net smelter royalty ("NSR") on each of the concessions. The NSR can be purchased by Precipitate for the price of US$500,000 per 0.5% for a total purchase price of US$2,000,000; and
•100,000 share purchase warrants ("Warrants") allowing the Vendor to purchase up to 100,000 common shares of the Company at an exercise price of $0.30 per share for up to 3 months from the date of grant. Should the Vendor exercise any of the Warrants and thereafter seek to sell some or all of the shares, it must notify Precipitate and allow Precipitate at least 10 calendar days to arrange buyers of the shares. Any warrant shares purchased by the Vendor will be subject to a four month hold period.
SNAP is sitting on some serious cash now as the deal is done:
Upon execution of the agreement, Precipitate was granted a 30 day due diligence period during which it reviewed all available technical and legal data related to the concessions. Having completed a satisfactory review of the available information, Precipitate has notified the Vendor of its election to proceed with the terms of the agreement.
Positives from the filing for SANP's next move:
However, in 2014 the Company resumed platinum testing following a positive result by a certified assayer in Arizona. The assayer used a propriety procedure using nickel instead of lead in the fire assay process. The first sample batch assayed for Platinum at 0.379 ounces per ton. This was verified using a fresh sample batch with an impressive 0.449 ounces per ton result. At current Platinum prices this represents an in the ground value of $511 to $606 per ton of the mineral ore, from which must be deducted extraction, transport, refining, costs etc.
All surface rights, entitlements, extractive permits and environmental license are in force except for a forestry permit which costs approximately $100,000 and is typically issued in 60-90 days. The concession has good truck access, is very remote with no social or community issues, good experienced labor pool and open-pit operation with no overburden.
Operationally the Company is responsible for the cost of permitting, extraction, trucking and loading the ore on board railcars at nearby Monclova. From there it will shipped to various toll refineries / smelters for processing. The cost of shipping beyond Monclova will be advanced by the Company and later reimbursed from proceeds. Net profits from operations will be split 50/50 with the concessionaire. Meanwhile, consultants will evaluate the cost effectiveness of concentrating the mineral ore either at the mine or in Monclova.
As a result of these positive "bonus" Platinum assays, the Company is planning to move its entire operations from the Dominican Republic to Mexico and focus 100% on financing and this near-term production opportunity.
Recent SANP News
- Form 10-12G - Registration of securities [Section 12(g)] • Edgar (US Regulatory) • 02/01/2024 09:55:44 PM
- Form RW - Registration Withdrawal Request • Edgar (US Regulatory) • 01/31/2024 10:11:21 PM
- Form 10-12G/A - Registration of securities [Section 12(g)]: [Amend] • Edgar (US Regulatory) • 01/19/2024 09:46:51 PM
- Form 10-12G/A - Registration of securities [Section 12(g)]: [Amend] • Edgar (US Regulatory) • 01/11/2024 09:59:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/14/2023 05:27:38 PM
- Form 10-12G - Registration of securities [Section 12(g)] • Edgar (US Regulatory) • 12/05/2023 06:30:59 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/12/2023 03:39:09 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/06/2023 05:03:49 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/04/2023 02:24:15 PM
- Strategic Joint Venture Signed by Santo Mining Corp. and Planta Vida S.A.S. • InvestorsHub NewsWire • 10/03/2023 07:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 07/12/2023 04:46:55 PM
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