Pacific Ridge Exploration (PEX.V) has announced it has signed an amended agreement with BMC Minerals which is in the final stages to complete the purchase of the Fyre Lake VMS project in Canada’s Yukon Territory. BMC was originally required to make a C$1M cash payment by December 31st last year, but the terms have been renegotiated.
The final payment is now only due by the end of this year, and in return for this extension, Pacific Ridge will receive more cash. A first payment of C$250,000 was completed before the end of last year while BMC will still have to pay C$850,000 in cash by the end of this year. Additionally, BMC will complete an additional C$75,000 payment in June. This means that in return for granting BMC Minerals a one year extension, Pacific Ridge will receive C$1.175M instead of C$1M. Not a bad ROI as this basically means Pacific will ‘make’ 17.5% in 2022. The downside is that Pacific Ridge won’t be able to use the million dollars in case it had budgeted to use the cash for exploration activities in 2022 but with a share price trading strongly over C$0.30, Pacific Ridge is in a much better shape to secure finding if and when needed.
We are still waiting to see assay results from last year’s drill program and hopefully the Kliyul project will continue to demonstrate good copper-gold values over thick intervals.
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