Geopacific Resources has successfully renegotiated the payment terms of the acquisition agreement with the vendors of the Kou Sa Copper-Gold Project in Cambodia.
The new terms will see future payments being deferred and linked to achieving two project development milestones which are receipt of financial closure and production targets.
These terms will result in the company conserving cash which will be spent in the ground at Kou Sa. The original terms required a cash payment in July.
No further vendor payments are due on the project until the completion of financial closure as per the renegotiated terms as Geopacific has already made the January milestone payment.
Geopacific’s managing director Ron Heeks said, “We have achieved a more realistic outcome in light of difficult capital markets and the downturn in commodity pricing. This result is beneficial to shareholders and reduced our need to return to the market for capital.
“We remain focused on moving Kou Sa towards production and will invest available cash in the ground.”
He said the company acknowledges the support of the vendors in this process. “Their willingness to work with us to achieve a realistic outcome and share some of the risk is testament to the ongoing belief in the Kou Sa project and is appreciated.”