Rose Petroleum PLC (LON:ROSE) has given Magellan Gold Corporation just over two weeks to complete the proposed acquisition of its San Dieguito de Arriba gold mill operation in Mexico.
The non-core asset sale was announced in March, with Magellan paying a US$100,000 deposit, but the buyer was supposed to have deposited a further US$900,000 of cash into escrow and previously, in June, Rose granted a 60-day extension to the option period.
READ: Rose Petroleum pockets US$100,000 as Magellan Gold asks for more time to consider purchase of San Dieguito de Arriba milling operations
A further extension now gives Magellan until August 15 to deposit the cash. Albeit, the buyer is also obligated to pay Rose US$25,000 per month (for August and September) for costs associated to the mills operation.
"We are working closely with Magellan towards a successful completion of this transaction, hence agreeing to this minor extension to allow them to complete their financial obligation,” said Matthew Idiens, Rose chief executive.
“We look forward to confirming the receipt of the irrevocable commitments from Magellan in due course."
As well as the cash, the original deal envisaged Magellan paying Rose some US$500,000 worth of shares to Rose.