Ranchero Gold Corp. has announced entering into a letter of intent (LOI) to sell its wholly-owned subsidiary, Minera y Metalurgia Paika, to an independent purchaser for nil consideration. This transaction includes four mineral licenses, regional water rights, and a conditional payment of $2.5 million pursuant to a prior sale agreement. The sale will offset Paika’s accrued liabilities of nearly $3.55 million. These liabilities will be assumed by the buyer and not transferred to Ranchero. The LOI is subject to due diligence and is expected to be replaced by a definitive share purchase agreement. Additionally, Ranchero announced a $30,000 loan to Toro Silver Corp. to assist with an audit, which constitutes a related party transaction as key directors hold positions in both companies. The transaction is exempt from certain regulatory requirements, and the loan is pending approval by the TSX Venture Exchange. Ranchero remains focused on its Pinchi Lake Nickel Project in British Columbia, Canada.
Mining and Metals, Corporate Finance,Canada, Mexico
https://www.globenewswire.com/news-release/2024/08/21/2933390/0/en/Ranchero-Enters-Into-a-Letter-of-Intent-to-Sell-Mexican-Subsidiary-and-Related-Party-Loan.html