Cascada Silver Corp. (CSE: CSS) has announced amendments to its option agreement for the Angie Copper Molybdenum Project, allowing for greater financial flexibility in near-term exploration activities. The revised agreement includes a reduction in the upcoming January 20, 2025, payment, coupled with adjustments to subsequent payments.
Revised Payment Terms
Under the amended terms with Inversiones América SpA, the vendor of the Angie Project, the January 20, 2025, payment has been reduced from $300,000 to $163,750. This revised payment will be split, with 50% ($81,875) to be paid in cash and the remaining 50% through the issuance of 2,700,516 common shares of Cascada, calculated based on the 20-day volume-weighted adjusted price of the shares. The January 20, 2026, payment has been increased by $163,750 to $913,750 and can be settled entirely through the issuance of shares at Cascada's option. The final payment of $2,500,000, due January 20, 2027, remains unchanged, with 50% payable in shares at Cascada's option.
Strategic Allocation of Funds
"I would like to thank the Vendor for working with us to modify the Option Agreement payment structure. The revised schedule allows us to allocate funds to near term exploration activities," stated Carl Hansen, President and CEO of Cascada. This amendment enables Cascada to strategically allocate resources towards ongoing exploration efforts at the Angie Project.
Phase II Drilling Program Underway
Cascada has commenced a Phase II diamond drilling program at the Angie Project, building upon positive results from the Phase 1 RC drill program in October 2024. The current program anticipates up to four diamond drill holes, totaling 2,000 meters. The first diamond drill hole is nearing completion, with assay results expected in March 2025. The drilling program is targeting a copper molybdenum porphyry system.
Royalty Agreement
In addition to the revised annual payments, the Vendor will receive a 1.5% net smelter royalty (NSR) upon Cascada earning a 100% interest in the Angie Project. Cascada retains the option to purchase two-thirds of the NSR for $5,000,000 within one year from the start of commercial production.
Any shares issued to the Vendor, including those for the January 20, 2025, option payment, will be subject to a standard 4-month hold period under Canadian securities laws.
