PPX Mining Corp. will receive a US$5.0 million investment from RIVI Capital LLC as part of a gold streaming agreement on future production from the company's Igor 4 concession, which forms part of the company's Igor property in northern Peru.
RIVI made an initial tranche payment of US$2.5 million to PPX. A second US$2.5 million tranche is payable upon meeting future production and other milestones, which the company expects to fulfill in the first quarter of 2017.
RIVI will be entitled to 10% of PPX's portion of combined gold and silver production from the Igor 4 concession, on a gold equivalent ounce, or GEO, basis. On top of the US$5.0 million investment, PPX will be paid US$400 per GEO delivered under the deal.
The company will have the option to reduce the delivery schedule to 5% of GEOs produced by making a one-time payment of US$5.0 million to RIVI 72 months after receiving the second tranche and when 20,000 GEOs have been delivered. This option can only be exercised if the spot price of gold is more than US$1,200 per ounce.