Revival Gold restructures, extends Beartrack earn-in terms

Revival Gold (RVLGF) announced the restructuring and extension of the Meridian Beartrack earn-in and related stock purchase agreement under which the Company intends to acquire Meridian, a subsidiary of Pan American Silver Corp. (PAAS) and the owner of the Beartrack property and associated infrastructure. The Beartrack property encompasses approximately half the mineral claim interests that make up Revival Gold’s 6,300-hectare Beartrack-Arnett gold project in Idaho, U.S.A. The restructuring and extension of the terms of the Agreement eliminates the obligation for Revival Gold to pay a subsidiary of Pan American the greater of US$6 per ounce of gold in mineral resource or $15 per ounce of gold in mineral reserve on the third anniversary of the closing of the Agreement.In addition, the Amendment provides for a three-year extension to the earn-in; thereby deferring the requirement for Revival Gold to provide site bonding until October 2027. Under the Agreement, Pan American maintains site bonding surety for Beartrack and Revival Gold reimburses Pan American for all site-related operating and maintenance costs. In consideration for the Amendment, Revival Gold has agreed that upon closing of the Agreement, Meridian will grant a subsidiary of Pan American a 0.3% net smelter return royalty on Beartrack, which is in addition to the 1.5% net smelter return royalty that is already to be granted at closing. Accordingly, upon closing of the Agreement, Meridian will grant Pan American’s subsidiary a 1.8% net smelter return royalty on Beartrack, of which, 0.5% will be extinguished upon payments totaling $2 million.