AI Sentiment: Bullish
Reason: Nativo Resources is revising its acquisition of the Morrocota project and delaying share issuance due to unstable market conditions. This strategic move is expected to protect shareholders and ensure sustainable growth despite market challenges.



In a significant recent development, Nativo Resources has decided to revise its acquisition of the Morrocota project and delay the issuance of shares. This strategic move comes as a response to the current unstable market conditions and aims to protect the interests of shareholders and investors.

The Morrocota project, located in Colombia, is a significant asset with substantial potential for gold exploration. The acquisition deal was initially set to include the issuance of 6 million common shares of Nativo Resources to the vendors of the project. However, given the volatility and uncertainty in the market, the company has decided to postpone this issuance.

The revised deal now includes a cash payment of $100,000 and the issuance of 2 million common shares to the vendors at a price of $0.05 per share. The remaining 4 million shares will be issued at a later date, depending on the market conditions and the progress of the project. This change in strategy is expected to minimize potential dilution for the company's shareholders and provide a more stable financial footing for the project's development.

Additionally, Nativo Resources has also secured an option to acquire another 70% interest in the project by making further cash payments and share issuances over the next four years. This move signifies the company's strong confidence in the project's potential and its commitment to maximizing shareholder value.

The management at Nativo Resources believes that these changes will provide a more balanced and beneficial deal structure for all parties involved. By adjusting the deal terms in response to market conditions, the company is demonstrating a proactive approach to risk management and strategic planning.

While the revised deal may result in a delay in the project's development timeline, the company is confident that this decision will ultimately lead to more sustainable growth and value creation for its shareholders and stakeholders. The Morrocota project remains a key part of Nativo Resources' strategic growth plan, and the company is committed to pushing forward with its development despite the current market challenges.