Vendetta Mining (VTT.V) has announced it has updated the terms of the call option agreement to purchase the Pegmont lead-zinc project in Australia. As the situation in the junior mining sector isn’t exactly fantastic, Vendetta wanted – and was able- to reduce the cash payment to the vendor. Vendetta now has to pay A$2M in four different tranches and complete an additional A$2.2M in exploration expenditures before February 2018 to earn a 100% ownership of the property.
Vendetta has also confirmed it will have to complete 17,000 meters of drilling by August 2018 and this shouldn’t be a problem considering it has already completed 4,200 meters of drilling. And as the company has committed to present a resource estimate containing in excess of 10 million tonnes by the end of next year, there’s little doubt Vendetta Mining will continue to explore at Pegmont as it needs to add approximately 2 million tonnes to the resource estimate. In fact, the company has already completed over 6,000 m of drilling completed since the last NI43-101 Mineral Resource Estimate. The company will need to raise additional funds but has solid institutional backing with Resource Capital Fund owning over 30% of the Company.
Insiders have recently acquired 70,000 shares in Vendetta Mining, which could be seen as an additional vote of confidence. This follows considerable insider purchases throughout 2015 indicating Vendetta’s management team is optimistic about the project’s and the company’s future.
Go to Vendetta’s website
The author holds no position in Vendetta Mining. Please read the disclaimer
