TARM, Tara Minerals in deal with Yamana
Yamana Buys Picacho, ~$40,000,000
On April 4, 2012 the Company’s subsidiary, Adit Resources Corp. (“Adit”) sold its wholly owned subsidiary, American Copper Mining S.A. de C.V. (“American Copper”) to Yamana Mexico Holdings B.V. (“Yamana”). American Copper’s primary asset is the Picacho group of concessions (the “Property”) located in Sonora, Mexico. The Property does not have any proven reserves.
As consideration for the sale of American Copper, Yamana agreed to pay Adit, in U.S. dollars: ·
$7.5 million, minus approximately $780,000 (the amount required to pay the Mexican government to release its tax lien on the Property), will be deposited into an escrow account and will be released when the Mexican government releases its tax lien on the Property (the “Escrow Release Date”);
Yamana Gold Inc. will surrender 500,000 common shares, and warrants to purchase an additional 250,000 common shares, that it holds in the capital of Adit for cancellation by Adit; ·
$9.8 million one year after the Escrow Release Date; ·
During the period ending five years after the Escrow Release Date, $1.0 million for every 100,000 ounces of gold, (whether measured, indicated, or inferred; as defined by Canadian Securities Administrators National Instrument 43-101) discovered on the Property. If no gold is defined on the Property three years after the Escrow Release Date, Yamana will make an advance payment of $3 million. Pursuant to this provision of the Agreement, Yamana will pay a maximum of $14 million.
·
$4.3 million six years after the Escrow Release Date.
Yamana has the option to terminate the agreement within ten business days prior to the one year anniversary of Escrow Release Date for any reason. If the Agreement is terminated, Yamana will be required to return the capital stock of American Copper and the underlying Property to Company in good standing.
AI
