Jul 21, 2010 06:30 ETGenco Receives $1.3 Million Payment Towards Sale of Chief
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 21, 2010) - Genco Resources Ltd. (TSX:GGC) has received a $1.3 million payment from Andover Ventures Inc. and amended the existing agreement by which Genco has agreed to sell to Andover 13,034,769 shares of common stock of Chief Consolidated Mining Company.
Under the terms of the original agreement dated March 24, 2009, Andover was required to pay Genco $5 million on or before September 30, 2010 plus quarterly interest calculated at the US Prime Rate plus 2% (subject to a minimum rate of 4% per year). Under the terms of the new agreement, Andover has paid Genco $1.3 million and agreed to pay Genco a further $700,000 plus quarterly interest on or before October 31, 2010 and $2 million plus quarterly interest on or before September 24, 2011. Andover has pledged to Genco 27,071,804 shares of common stock of Chief (representing approximately 51% of Chief's outstanding shares) as security for the outstanding balance of $2.7 million.
Genco's Acting CEO, James Anderson stated, "We believe this payment from Andover reflects their continued efforts to complete the purchase of the Chief Shares as quickly as possible. The new terms better reflect the underlying value of the shares and give additional time for Andover to complete the transaction if needed."