Cornish sells Canada royalties to Elemental Altus
UK-focused Cornish Metals has announced the sale of its royalty interests in the Mactung and Cantung tungsten project, in northern Canada, to Elemental Altus Royalties for $4.5-million.
The sale follows the recently announced disposal of the Nickel King project and sharpens the dual-listed company’s focus on the South Crofty tin project, in the UK.
Cornish acquired the royalties in March 2016 for C$1.5-million. The Mactung project, which has a 4% net smelter return (NSR) royalty, is an advanced-stage exploration project on the border of Yukon and Northwest Territories. Fireweed Metals owns the Mactung project.
The Cantung tungsten project, in western Northwest Territories, operated intermittently from 1962 until it closed in 2015. The Cantung royalty is a 1% NSR royalty.
Cornish said Elemental Altus will enter into an agreement with Teck Resources and assume the obligation to pay a C$1.5-million deferred consideration to Teck on the earlier of a development decision at Mactung or re-commencement of commercial production at Cantung. The agreement with Teck is a condition of closing.
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