Hey Corgi, well didn't this catch us by surprise, or not,...

Hey Corgi, well didn't this catch us by surprise, or not, depending on your viewpoint at the time..

And yes, to think that a buyer can force the hand of the vendor because the deposit is materially larger than what was quoted "therefore you should pay up" is fanciful.. So the statement below is a load of BS, but who cares..



What is of note is the little caveat in the option purchase agreement that Jose held a prohibition to sell order over the mining concessions on the same deed. So it could not be sold unless he agreed.

(a) Purchase option agreement over the mining concessions of El Zorro Project.
By public deed dated July 17, 2017, granted before the Notary Public of Caldera Ms.Carolina Moreno Jashes, Mr. José Agustín Bahamondes Améstica, as vendor, and Tesoro Chile, as beneficiary and buyer, entered into a purchase option agreement over a group of mining concessions forming El Zorro Project. On the same deed the vendor granted a mortgage and a prohibition to sell or assign over the existing mining concessions of the Project.

So yes I believe that something material has come about where a meeting was convened and certain items discussed whereby an option was put that if the existing option agreement was dissolved then a second more profitable option may be negotiated in a shorter timeframe.

That said, if anyone was interested it sits a s a curiosity that the FS would be mentioned as possibly pushing right as this is normally a defining document with regards to attributing bankable value. Still if an MRE and accompanying Scoping Study can be delivered it is possible I guess (Others may know more of the legalities and DD component req on large capital acquisitions) that a big miner and there are plenty in the area & who doesn't need bank finance, could pay cash for the lot. Thanks very much..

As for the vendor agreeing to kick in a certain amount, I can only assume that was a requirement of being seen to be a true JV partner under Chilean regulations else I may have said that Zeff could wear the cost himself, cause he's probably done ok, if I were Jose that is..

TBH they were never going to mine this thing once the it was apparent of the size of it.. There has been enough in the ground to support a 10yr 100k oz operation for many months.. The continuation of drilling was either to show the world a set of swingers or to dress the pig up for sale..

Jorc still reports the holes as variable (25-200m) and not suitable for estimation, reconnaissance only, so I wonder when this is going to be addressed or is it the case that the Jorc ref won't amend until the MRE drops.

My query being if the FS has the chance of going right, then what about MRE, does it go too?.

Also considering the original option agreement has been dissolved what, if anything, does that mean to the vesting of performance shares.. ?

Obviously those tied to the delivery of the FS would now need to be re-jigged, by any reasonable logic one would think.

I dare say all this will be answered in due course once the new arrangement is tabled so will wait and watch for any surprises.

Whilst I believe it is a good thing in the long run, it is still a curiosity to me at this point I must admit.. 8tey