Mr. Michael Williams reports
VENDETTA OBTAINS EXTENSION TO THE PEGMONT PRE-PAID ROYALTY PAYMENT TO EARN 100% OF PEGMONT LEAD-ZINC PROJECT
Vendetta Mining Corp.has signed an amendment to its agreement with Pegmont Mines Ltd., the vendor of the Pegmont project.
To obtain 100% of the Pegmont Project the Company had to complete certain drilling milestones and make option payments and a pre-paid royalty payment, in doing so the Company would also obtain an AU$5,250,000 credit against future royalties.
To date, the Company has completed all necessary drilling requirements, work commitments and payments under the Option Agreement. The final AU$1 million option payment and the AU$3 million pre-payment of future royalties are due on November 6, 2018.
The Company will pay the Vendor the final AU$1 million cash option payment by the due date.
The Vendor has granted the Company an extension to the AU$3 Million payment, a pre-payment of future royalties from the Pegmont Project subject to certain additional payments as described below.
The Company is assessing several financing options for the pre-paid royalty, the extension provides time for that process to be completed, which includes in some cases, time needed for third parties to complete due diligence.
The Company and the Vendor will now seek indicative approval from the Queensland Minister for Natural Resources, Mines and Energy for transfer of the project to Vendetta.
Extension Terms The Option is not exercised until the Pre-Paid Royalty and any additional payments, as defined below are made. In the event the Pre-Paid Royalty is paid between November 1 and November 29, 2018 the Company will make an additional payment of AU$50,000 and the Companies credit against the future royalties will be reduced from AU$5,250,000 to $5,000,0000.In the event the Pre-Paid Royalty is not paid by November 30, 2018 the Company will make a payment of AU$100,000 on December 1, 2019 and in doing so the Vendor has been granted an extension to March 31, 2019.In the event the Pre-Paid Royalty is not paid by March 31, 2019, the Company will pay an additional AU$300,000 on April 1, 2019 and in doing do so the Vendor has granted an extension to May 6, 2019.In the event the Pre-Paid Royalty is not paid by May 6, 2019, the Company will pay an additional AU$350,000 and the Companies credit against the future royalty will be reduced from AU$5,000,000 to $4,500,0000 and in doing do so the Vendor has granted an extension to November 6, 2019.
The Company would like to thank the Board of Pegmont Mines Ltd, and in particular Director and CEO Malcolm Mayger and Chairman John Armstrong for their continued support of the Company and its progress made advancing the Pegmont Lead-Zinc project towards production.
Vendetta's CEO and President Michael Williams, stated: "we appreciate the flexibility that the extension provides. The spirit of the extension was to restore the original option agreement cash payments that were forgone by Pegmont Mines Ltd. in 2015 due to the difficult market conditions that prevailed at the time. Then as now, both parties understand the benefit of directing cash towards advancing the project which ultimately is to everyone's advantage ".
About Pegmont
Pegmont is a stratiform, Broken Hill-Type deposit that outcrops with an overall shallow dip to the south east and is hosted in a magnetite-rich banded iron formation within high grade metamorphic rocks. The project consists of three granted mining leases and one exploration permit that cover an area of approximately 8,290 ha.
Pegmont is situated in the Mount Isa - McArthur Mineral Province, which hosts one of the world's richest endowments of lead-zinc-silver mineralization, including several world-class lead-zinc-silver mines.
Pegmont is located 25 km west of South 32's Cannington silver-lead-zinc operation, one of the world's largest producers of lead and silver and 28 km north of Chinova Resources' Osborne copper-gold operations. Pegmont is proximal to existing infrastructure including public roads, mine haul roads, rail, and a natural gas pipe line for power generation.
The Company is progressing a Preliminary Economic Assessment ("PEA") of the Pegmont Project, which is contemplating a stand-alone operation, processing ore at a rate of 1 Mtpa, producing separate lead and zinc concentrates.
About Vendetta Mining Corp.
Vendetta Mining Corp. is a Canadian junior exploration company focused on advanced stage exploration and development at the Pegmont Lead Zinc Project in Australia. Vendetta has an option to acquire a 100% interest by completing certain work requirements and making option and advance royalty payments. Additional information on the Company can be found at www.vendettaminingcorp.com
Qualified Person
Peter Voulgaris, MAIG, MAusIMM, a Director of Vendetta, is a non-independent Qualified Person as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this press release, and consents to the information provided in the form and context in which it appears.
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