Serabi Gold pushes back date for final Chapleau payment

Brazil-focussed gold exploration and development company Serabi Gold announced on Monday that itself and Equinox Gold Corporation - the parent company of Anfield Gold Corporation - agreed on 20 December to extend the final payment date for the deferred consideration due over the acquisition of Chapleau Resources.

The AIM-traded firm said Chapleau is a wholly-owned subsidiary of Anfield, which holds the Coringa gold project.

Serabi completed the acquisition of Chapleau on 21 December 2017, with a final payment of $12m due on the earlier of either the first gold being produced, or 24 months from the date of closing.

The deferred consideration would now be settled on 31 March 2020 or if earlier, upon completion of any new financing arrangement by Serabi.

Interest would be payable on the outstanding sum at the rate of 10% per annum, and would be settled at the same time the deferred consideration payment is made.

“As at 30 September, the company’s gross cash holdings totalled $13.4m,” the board said in its statement.

“The company intends to raise additional financing in the first quarter of 2020 which, in conjunction with projected cash flow from Palito and current cash holdings, will fund inter alia the initial capital requirements for the next stage of development of the Coringa Project and settle the deferred consideration.

“Discussions are already underway with potential financing partners and the directors anticipate funding being available in the first quarter of 2020, following any approvals if applicable at any shareholder meeting of the company.”

At 1444 GMT, shares in Serabi Gold were down 6.88% at 64.25p.