Dateline Resources Ltd. said Feb. 19 that it has renegotiated the terms of previously announced deals to acquire the Gold Links mine and the Sooner Lucky Strike mine and the Saguache mill in Colorado.
Dateline will issue of 60 million fully paid ordinary shares to the vendors instead of future cash payments totaling US$24 million over four years.
Cash payments contingent on production will not be payable for at least five years.
For the acquisition of the Gold Links property, Dateline will issue 30 million shares, make cash payments of US$2.5 million by March 1, 2023 at a rate of US$50 per gold equivalent ounce mined.
The ASX-listed company will pay a further US$2.5 million on production on the same terms but without a due date.
The company will issue 30 million shares and pay cash on the same terms for the Sooner Lucky strike property deal.
Overall cash liabilities from both the transactions were reduced from US$34 million to US$5 million in deferred costs and contingent payments to each vendor, the company noted.
In addition, Dateline acquired about 900 acres of land giving it freehold title of the land that hosts the Gold Links Leasehold in an all-scrip transaction. In exchange, the company will issue 30 million shares and 10 million options exercisable at 2.5 cents each.
Upon closing, the company will own about 1,300 acres of unencumbered freehold land in Colorado along with the attached mineral rights and two permitted mills.
"Dateline now has much greater financial flexibility to progress the development of these assets," Dateline Chairman Mark Johnson said.
"Capital resources can be focused on exploration and development of the assets and to achieving profitable gold production."