Bellhaven Copper and Gold (BHV.V) has renegotiated its earn in agreement on the La Mina project in Colombia. As per the updated agreement, the cash payments of $1.5M and $800,000 in share payments will now be spread out over the next 18 months, which will allow the company to have a tighter grip on its cash flow management. The next cash payment is only due in December 2014, which allows Bellhaven to continue exploring the property and advancing the La Mina copper-gold project.
Bellhaven can earn a 80% interest in the project by making the $2.3M payment in cash and shares. Should the company complete a feasibility study and pay a fee of $20/oz of 20% of the proven and probable reserves, it will earn a 100% interest in the La Mina project.
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Disclosure: The author holds a long position in Bellhaven Copper and Gold. Please see our disclaimer for current positions.
