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Empire Metals Ltd - Kidderminster, England-based copper and gold miner - Sells 50% stake in 30-year mining concession Georgian Copper & Gold JSC to Canada-based gold miner, Candelaria Mining Corporation, for an all-cash payment of USD3.3 million. The remaining 50% stake is owned by Caucasian Mining Group.
The company says it could not proceed with an October 2020 sale agreement with Candelaria Mining for CAD7 million after Caucasian Mining exercised its right of first refusal. Subsequently it was "not possible to directly match" or ensure receipt of the full consideration offered by Candelaria Mining, Empire says. The parties re-entered negotiations and Empire agreed to sell its 50% interest for a single cash payment of USD3.3 million. The company says it expects the deal to be completed by mid June.
Empire says the sale allows it to leave the "untenable situation" in Georgia, where the country's mining agency has "withdraw the majority of the original licence area". The company says it plans to focus on its ventures in Western Australia, particularly its Eclipse and Central Menzies Gold Projects.
Current stock price: 2.96 pence, up 9.5% on Monday afternoon
Year-to-date change: down 22%
By Scarlett Butler; scarlettbutler@alliancenews.com
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