Dark Horse Resources Ltd. said June 7 that it completed the first-stage renegotiation of the option deal for the acquisition of the Las Tapias lithium project in Argentina.
In 2016, Dark Horse's takeover target, Oronegro SA, struck a deal to acquire Las Tapias.
Under the previous deal, Dark Horse would acquire a 100% interest in the project for U$4.4 million, to be paid over a five-year period until Nov. 22, 2020. The company would receive the project stake after all payments had been made.
The revised agreement would give the company a 25% equity stake once it fulfills a payment of US$770,000 on Nov. 22.
Additionally, the vendor agreed to receive US$270,000 of this payment as Dark Horse shares at the company's discretion and to delay the cash component of US$500,000 until early 2019. The company will now pay US$500,000 in staged payments until May 2019.
Dark Horse has already paid US$330,000 with about US$4.1 million still due.
The vendor also agreed to consider renegotiating the remaining payments once this payment schedule has been met, the company noted.
Dark Horse is undertaking a 24-hole drill program for a total of 3,000 meters at Las Tapias to determine the size and grade of the spodumene mineralization and to generate sufficient data to meet requirements for the JORC-compliant maiden resource estimate.
