LONDON (Alliance News) - Fluorspar miner Tertiary Minerals PLC on Monday said it has agreed to sell its non-core gold assets in Finland.
Tertiary Minerals said it has sold the Kaaresselka and Kiekeromaa assets to Canada-listed precious metals miner Aurion Resources Ltd for GBP100,000 upfront, to be paid GBP85,000 in cash and GBP15,000 in Aurion shares.
Tertiary Minerals will retain royalty interests in the two projects, rising to USD3.00 per ounce of gold following definition of a measured mineral resource estimate on either project.
It also will get a 2.0% net smelter royalty on all future gold production from either property, which Aurion will have the right to buy from Tertiary Minerals for USD1.0 million at any time prior to the start of commercial production on either project.
"We are delighted to have sold our two legacy gold projects to an accomplished gold explorer. We wish Aurion every success with the development of the projects and look forward to potentially sharing the future upside through our retained royalty interest," said Tertiary Minerals Managing Director Richard Clemmey.
Shares in Tertiary Minerals were up 12% to 1.20 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Tertiary Minerals (TYM)