11:43 AM EST, 12/31/2024 (MT Newswires) -- Halcones Precious Metals (HPM.V) on Tuesday updated on an option agreement related to it buying the Polaris project, saying it had entered into a fresh letter agreement dated Dec. 18, with Austral Exploraciones.

The company said the new agreement supersedes the original letter agreement dated Oct. 25 between it and the shareholders of Austral and, therefore, the original agreement has been terminated.

Pursuant to new agreement, it and Austral have agreed to reduce the number of Halcones shares issued at closing and space out the issuance of Halcones shares over time.

The company said at closing of the option transaction, 15 million Halcones shares will be issued. On such date that is eight and 12 months from the closing of the transaction, 20 million and 15 million Halcones shares will be issued, respectively. Each tranche of Halcones shares shall be subject to a statutory four-month hold period, the company added.

Pursuant to the deal, Halcones has agreed to complete a minimum of 2,000 meters of drilling on the Polaris project within 12 months of obtaining the permits and approvals to do so.

All other commercial terms in the new agreement remain unchanged from the original agreement, the company said in a statement.

Shares were flat at $0.05 on the TSX Venture Exchange.