(Alliance News) - Arc Minerals Ltd said Monday that Sydney-listed explorer MetalsTech Ltd has exercised its option to acquire Arc's interest in the Sturec gold project in Slovakia for up to USD8 million.
The option agreement was first signed in mid-November.
Under the option agreement, Arc Minerals will first receive a cash payment of AUD450,000, about GBP239,837, less the AUD30,000 option fee within ten business days of a sale & purchase agreement being executed.
A second cash payment of AUD300,000 will be made within six months of the completed sale.
If within two years of sale Sturec's gold resource tops 1.5 million ounces at a grade of at least 2.5 grams of gold per tonne of ore, Arc will get a royalty of AUD2 per ounce of gold capped at seven million ounces.
Shares in Arc Minerals - which is based in London - were 22% higher at 3.30 pence on Monday.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Arc Minerals (ARCM)