JOHANNESBURG (miningweekly.com) – Aim-listed Tertiary Minerals has sold two noncore gold assets, Kaaresselkä and Kiekerömaa, in Finland, to TSX-V-listed Aurion Resources.
Aurion will pay an initial consideration of £15 000 in cash and £85 000 in Aurion shares, with Tertiary retaining a royalty interest in the projects.
Tertiary will receive a preproduction royalty of $1/oz, following the definition of an inferred mineral resource estimate on either project, as well as a preproduction royalty of $2/oz following the definition of an indicated mineral resource estimate on the projects.
Upon the completion of measured mineral resource estimates on the projects, Tertiary will receive a preproduction royalty of $3/oz.
The company would also receive a net smelter returns royalty (NSR) of 2% on all future gold production from either property.
Aurion, however, has the option to buy 50% of the NSR from Tertiary for $1-million at any time prior to the start of commercial production on the projects.
The sale is conditional upon successful transfer of the exploration licences for each project from Tertiary to Aurion, to be handled by the mining division of the Finnish Safety and Chemicals Agency.
Tertiary MD Richard Clemmey said the company was delighted to have sold its 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.