Rugby Mining Limited, a Canadian-based mining firm, announced that it entered a new agreement last February 26 with its local joint venture partner All-Acacia Resources Inc. for the payment terms of the Mabuhay Gold project.
The two firms first came into an understanding July 27, 2010 where All-Acacia will give an exclusive option to earn an undivided 80 percent right, title, and interest in the Mabuhay Gold project.
However, the said agreement tagged as the “Mabuhay Agreement” was amended first on July 9, 2013 then later again, giving way for the “Option Agreement”.
The Option Agreement entails All-Acacia Resources having a choice to have Rugby Mining settle their payment in cash or shares. To conform, Rugby Mining will issue an initial payment in the form of 365,000 common shares priced at around $ 0.13 per share or $ 50,000 within 30 days.
All-Acacia Resources will then receive from Rugby Mining in either cash or common shares $ 100,000 within 12 months of initial payment, another $ 100,000 within 24 months of initial payment, and $ 175,000 for final payment.
The Canadian mining company was granted access to the drilling and exploration permit January 23, 2019. This gave Rugby Mining rights to operate in the once one of the Philippines’ highest grade gold producers, an 878-hectare site south of Surigao City in Surigao del Norte.
