Shares in Vendetta Mining Corp (CVE:VTT) (OTCMKTS:VDTAF) climbed as it agreed to an extension to its timeline to buy the Pegmont lead-zinc project in Australia.
In a statement Friday, Vendetta said it had paid the vendor A$50,000 to extend the payment of A$300,000 due on March 31 to May 6 this year.
On May 6, Vendetta may further extend the final property payment of A$3 million to November 6, by paying a further A$350,000, it added.
"We appreciate the continued support of Pegmont Mines Ltd. in particular director and CEO Malcolm Maygar and Chairman John Armstrong," said Michael Williams, Vendetta's president and CEO.
The firm said the extension allowed it time to complete negotiations and obtain TSX-V approvals for a financial instrument that will allow it to pay the A$3 million to complete the acquisition of the Pegmont lead-zinc project to wholly-own the project.
The project lies in the Mount Isa-McArthur mineral area and is 25 kilometers (15 miles) west of the Australian miner South32’s Cannington silver-lead-zinc operation, one of the world’s largest producers of silver and lead.
It is also 28 kilometers (17 miles) north of the Australian miner Chinova Resources PTY Ltd’s Osborne copper-gold operations.
Currently, it boasts an indicated resource of 5.8 million tons at 6.5% lead, 2.6% zinc and 11 grams per ton silver.
Preliminary economic assessment
A preliminary economic assessment (PEA) release this year outlined a 10-year mine plan that generates a pre-tax internal rate of return of 32% (after tax 24%) and a net present value of $201M ($128M after tax).
That assumes base case long term metal prices of $0.91 per pound lead, $1.09 per pound zinc and $16.50 per ounce silver.
The report also identified how the property could be enhanced and Vendetta has identified several high priority exploration targets.
Vendetta shares in Toronto added 5% to stand at $0.10.
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