23rd Dec 2019 17:35
(Alliance News) - Serabi Gold PLC on Monday said it has struck an agreement with Equinox Gold Corp to extend the final payment date of the deferred consideration for its 2017 acquisition of a Brazilian gold project.
Serabi bought the Coringa gold project from Anfield Gold Corp, an Equinox subsidiary, in December 2017. The date for the final payment of USD12 million has been extended to March 31, 2020.
It was originally due on the earlier of either 24 months following the closure of the acquisition deal or when the first gold was produced.
Serabi said that at September 30, it had gross cash holdings of USD13.4 million. It plans to raise additional capital in the first quarter of 2020 which will go towards settling the remaining consideration, and funding the development of Coringa.
Serabi shares closed 8.1% lower at 63.40 pence each in London on Monday.
By Eric Cunha; [email protected]
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