JOHANNESBURG (miningweekly.com) – Aim-listed Tertiary Minerals has completed the sale of its noncore gold assets in Finland to Canadian precious metals miner Aurion Resources for £100 000 in cash and shares.
The assets include Kaaresselkä and Kiekerömaa and Tertiary will retain a royalty interest in these two projects.
"We are delighted that the completion of the sale has gone smoothly,” MD Richard Clemmey said in a statement issued on Tuesday.
Tertiary is entitled to a preproduction royalty of $1/oz of gold following the definition of a National Instrument- (NI-) 43-101-compliant inferred mineral resource estimate on either project and a preproduction royalty of $2/oz of gold following the definition of an NI-43-101-compliant indicated mineral resource estimate on either project.
A preproduction royalty of $3/oz of gold will apply following the definition of an NI-43-101-compliant measured mineral resource estimate on either project.
Tertiary is also entitled to a 2% net smelter return (NSR) royalty on all future gold production from either of the two projects; however, Aurion may buy 50% of the NSR from
Tertiary for $1-million at any time prior to the start of commercial production at either of the projects.