Fremont Gold Ltd. (FRE:TSX.V; FRERF:OTCQB; FR2:FSE) announced in a news release it has amended the terms of the option agreement for its acquisition of the Griffon gold project on Nevada's Cortez Trend.
The original agreement of December 2019, entered into with Liberty Gold Corp. subsidiary Pilot Gold (USA) Inc., included a requirement that Fremont pay Pilot $50,000 on Dec. 16, 2020. It also called for Fremont to issue to Liberty a number of common shares that would increase Liberty and its affiliates' share ownership to 9.9%.
Fremont and Pilot recently agreed to a few modifications of the terms. One is that instead of the $50,000 payment due Dec. 16, 2020, Fremont will pay $25,000 and do so after the Toronto Stock Exchange (TSX) approves the revised terms.
The other change revises the issuance of shares. Now, Fremont will issue 10 million common shares to Liberty over four years. Fremont already has issued 2.5 million shares and will issue another 2.5 million after the mentioned TSX approval. Fremont is to pay the third tranche on or before Dec. 16, 2022, and the final one on or before Dec. 16, 2023. The company noted that these securities will be subject to a four-month hold period.
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