(Sharecast News) - Tertiary Minerals has accepted a binding offer from Aurion Resources for the purchase of its royalty interests in the Kaaresselkä and Kiekerömaa gold projects in Finland, it announced on Monday.
The AIM-traded company said the consideration payable on closing of a formal sale and purchase agreement was CAD 0.2m (£0.13m), to be paid in cash.
It said it would also receive 83,333 common shares in Aurion Resources as consideration shares, which would be subject to a statutory four month-and-one day hold period from closing.
The agreement also remained subject to acceptance by the TSX Venture Exchange.
Tertiary noted that the closing price of Aurion's shares on the TSXV exchange on 5 August was 68 Canadian cents.
"The proceeds of the sale will be applied to the company's exploration projects in Nevada, where we are awaiting assay results from trenching at the Brunton Pass Copper Project, and in Zambia where a successful drilling programme was recently completed at the Jacks Copper Project," said executive chairman Patrick Cheetham.
"The company is building an attractive portfolio of exploration projects in Zambia and we are pleased to be generating these additional exploration funds from internal resources.
"We are also pleased to become a shareholder in Aurion once again at a time when its interests in the Risti and Helmi gold discoveries in Finland are delivering exciting exploration results close to Rupert Resources' four million ounce Ikkari gold discovery."
At 1244 BST, shares in Tertiary Minerals were up 5.28% at 0.13p.
Reporting by Josh White at Sharecast.com.
Tertiary Minerals (TYM)