("VIM", the "Company" or the "Group", Aquis: VIM)
Further to the announcement of
Also, as announced on
In anticipation of the finalisation of the Consortium, VIM is in the process of transferring to the Vendors ownership of the Oro Pesa project and 50% of Karmin Peru SAC, the group company which holds the Cushuro concessions. The Directors expect that these transfers (together with the Settlement Agreement, the "Transaction") will be executed shortly.
The Directors are pleased to announce that on 3 October 2020, the Company completed the Settlement Agreement with the Vendors.
The Settlement Agreement:
· confirms that title to the Minaspampa and
· cancels the unpaid consideration of
The Transaction has the effect of removing from VIM's consolidated balance sheet:
a. the Minaspampa,
b. 50% of the group's holding in Karmin Peru SAC;
The Directors estimate that the combined impact will be a reduction in net assets of approximately
Following the transfer of the mining concessions of Minaspampa,
One Valley Peru SAC ("OVP")
Under the Settlement Agreement, the Company has undertaken to liquidate OVP, the subsidiary which previously owned the Minaspampa and
The Company has today been notified that a creditor has commenced insolvency proceedings against OVP. OVP intends to work with the liquidator, whether appointed through the creditor process or by OVP, to ensure that all liabilities are settled on an orderly basis.
The Settlement Agreement provides for the formation of a new 50:50 consortium to be finalised between VIM and one of the Vendors, an experienced Peruvian operator, for the joint development of the Oro Pesa and Cushuro projects with the objective of commencing gold production as soon as possible. The Partner will lead commercial operations in
The Vendors who now own the concessions and assets comprising the Oro Pesa project (under the terms of the Settlement Agreement), have agreed to grant exclusive rights for the use of the Oro Pesa concessions and assets within the Consortium for a five year extendable term.
The Partner will operate the Oro Pesa consortium, completing the construction of the plant and the formalisation process for tolling operations to start in due course.
VIM and the Partner will agree their respective contributions of necessary finance and equipment in order to bring the project into production.
Cushuro - joint development of mining project
Karmin Peru SAC, which is owned 50% by VIM and 50% by the Vendors (under the terms of the Settlement Agreement) will grant exclusive rights for the use of the Cushuro mining concessions within the Consortium.
The Partner will operate the Cushuro project and VIM and the Partner will agree their respective contributions of necessary finance and equipment in order to bring the project into production.
"The proposed Consortium will enable us to bring Cushuro and
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