Standard Tolling (TON.V) released it has encountered severe legal issues with its plant in Huamachuco, in Northern Peru. As of this moment, it’s very likely the processing site will never be used for either ore processing or even as a central ore depot for high-grade gold-bearing ore from artisanal miners in the region.
That’s not the news Inca One Gold (IO.V) was wishing for and although the most important parts of the original agreement (the acquisition of the ball mill, the ore and using Standard Tolling’s ore facility) will, according to COO George Moen and CEO Ed Kelly, still be in effect, the original merger agreement will now be updated and replaced by an asset purchase agreement. The final details of this transaction are still unknown and it looks like trading in Standard Tolling will remain halted until a new deal will be signed.
Conclusion: this is very bad news for Standard Tolling and its shareholders, but shouldn’t have a big impact on Inca One as the key elements of the original agreement are still in effect and Inca One is still trucking ore from Standard Tolling’s plant to the Chala One mill. We hope to see an updated asset purchase agreement soon and will obviously provide an update as soon as a reworked agreement has been released.
We have also visited Inca One’s Chala One and Mollehuaca mills in Peru in November and will release a site visit report later this week.
> Click here to go to Inca One’s website
Disclosure: The author holds a long position in both Standard Tolling and Inca One Gold. Inca One is a sponsor of the website. Please see our disclaimer for current positions.
