Fidelity Minerals Provides Update on Sale of Cerro Dorado
Fidelity Minerals Provides Update on Sale of Cerro Dorado
Vancouver, BC, October 13th, 2020 – Fidelity Minerals Corp. (TSX-V: FMN | FSE: S5GM | SSE:
MNYC) (“Fidelity Minerals” or the “ Company”) is pleased to announce revised payment terms
in relation to the sale of its Cerro Dorado gold plant. Further to the US$1.43 million sale agreement
announced on October 1, 2019 total payments made by the Purchaser have totalled US$500,000,
meeting the conditions of the sale through to March, 2020 . As a result of COVID -19 related
regulatory delays and disruptions the Company has been working with the Purchaser to negotiate
amended payment terms for the remaining US$930,000. On October 9, 2020, the Company executed
an addendum to the original sale purchase agreement, with a revised payment schedule.
The revised payment terms for the outstanding balance, is outlined below:
• US$100,000 on October 10, 2020
• US$100,000 on November 25, 2020
• US$100,000 on January 25, 2021
• US$310,000 on April 25, 2021
• US$320,000 on July 24, 2021
• US$930,000 TOTAL
Following execution of the addendum, the payment scheduled for October 10th has been received.
Importantly, the revised terms require accelerated payments to be made to the Company, under
certain conditions.
As outlined in the original sale purchase agreement, in the event the Purchaser has missed a payment
and this has not been remedied within 15 days, the ultimate transfer of Cerro Dorado SAC to the
Purchaser will not complete and ownership of the mill complex, mine and concessions including all
improvements and on-property assets will remain with Fidelity Minerals. The execute d addendum
also incorporates certain financial assurances, and the requirement to provide the Company with
regular updates.
MANAGEMENT COMMENTARY
Director & CEO of Fidelity Minerals, Mr. Ian Graham commented: “The recently agreed,
revised payment terms for Cerro Dorado provide the Company with increased confidence that the
sale transaction will now complete. We are pleased to have been able to work closely with the
Purchaser, to negotiate a mutually agreeable solution, to enable the timely recommis sioning of
Cerro Dorado, currently scheduled before the end of CY2020. In the interim, we are focused on our
active exploration programmes, particularly i) Greater Las Huaquillas, where we are approaching
the completion of the reinterpretation of a historical geophysical survey, and ii) Las Brujas, where
have a field crew on site, performing extensive sampling and mapping. We look forward to providing
a further update on these activities shortly.”
About Fidelity Minerals Corp.
Fidelity Minerals Corp. is assembling a portfolio of high-quality mining assets in Peru through the
implementation of our Strategic Project Generator (SPG) model. The project generator model
involves the identification and acquisition of appraisal stage opportunities with near-term valuation
catalysts, including potential for high -impact M&A. The company is backed by an experienced
management team with diverse technical, market, and commercial expertise and is supported by
committed and sophisticated investors focused on building long term value.
On behalf of the Board of Fidelity Minerals;
Ian Graham
CEO and Director
Tel: +1.604.671.1353
Email: [email protected]
Investor Contact:
Bahay Ozcakmak
Executive Chairman
Tel: +61.414.596.007
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE
EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF
THIS NEWS RELEASE.
Disclaimer & Forward -Looking Statements: This news release contains forward -looking statements.
Forward-looking statements are statements that relate to future events or future financial performance. In some
cases, you can identify forward-looking statements by the use of terminology such as “may”, “should”, “intend”,
“expect”, “plan”, “anticipate”, “believe”, “estimate”, “project”, “predict”, “potential”, or “continue” or the
negative of these terms or other comparable terminology. These statements speak only as of the date of this news
release. This news release may also contain inferences to future oriented financial information (“FOFI”) within
the meaning of applicable securities laws. The information in this news release has been prepared by our
management to provide a context for the project acquisition and to provide the reader with an outlook for our
future activities and anticipated key projects and may not be appropriate for other purposes. Forward -looking
statements in this announcement include, (but are not limited to) advancing certain key project activities that
could represent important milestones which the Company expects may represent material valuation catalysts,
such as the Company is currently preparing plans for a more comprehensive geophysics and sampling project to
build on the initial positive results . Further, forward -looking statements in this relea se include that Fidelity
Minerals Corp. will continue to focus on its medium -term objectives, including to cost-effectively delineate
substantial gold, copper and silver resources from the existing project portfolio , opportunistically expand the
project portfolio with accretive acquisitions , and intends to d efine a >1 million -ounce gold (I Moz -eq) gold
resource within 3 years.