Cornish Metals has closed a royalty pursuits sale on the Mactung and Cantung tungsten initiatives in Northern Canada to Elemental Altus Royalties.
The sale has a complete consideration of $4.5m (C$6.23m). The primary cost of $3m has been made to Cornish.
The settlement, initially introduced in June 2024, stipulates that Elemental Altus pays Cornish Metals an extra $1.5m in 12 months after the closing of the transaction.
The royalties had been acquired by Strongbow Exploraion in March 2016 from Teck Sources. Strongbow Exploration introduced its title change to Cornish Metals in July 2020.
Elemental Altus additionally signed an settlement with Teck Sources and assumed the duty to pay deferred consideration of C$1.5m to Teck after a growth choice on the Mactung undertaking or the recommencement of manufacturing on the Cantung undertaking, whichever is earlier.
The royalties embrace a 4% web smelter returns (NSR) royalty on the Mactung tungsten undertaking.
Entry probably the most complete Firm Profiles
in the marketplace, powered by GlobalData. Save hours of analysis. Acquire aggressive edge.
Firm Profile – free
pattern
Your obtain e mail will arrive shortly
We’re assured in regards to the
distinctive
high quality of our Firm Profiles. Nonetheless, we wish you to take advantage of
helpful
choice for your corporation, so we provide a free pattern that you could obtain by
submitting the beneath type
By GlobalData
The Mactung undertaking, straddling the Yukon and Northwest Territories border, is in a sophisticated exploration stage.
The sale features a 1% NSR royalty on the Cantung tungsten undertaking in western Northwest Territories. Cantung had a historical past of intermittent operation from 1962 till its closure in 2015.
Cornish Metals interim CEO and director Ken Armstrong earlier stated: “The sale of the Mactung and Cantung royalties follows Cornish Metals’ lately introduced sale of the Nickel King undertaking and additional demonstrates our precedence and give attention to advancing the corporate’s wholly owned and totally permitted South Crofty tin undertaking, within the UK, in direction of graduation of manufacturing in 2027.”
In June 2024, Cornish agreed to promote its 100% curiosity within the Nickel King and Opescal Lake properties (collectively known as the Nickel King Property) to Northera Sources for as much as C$8m.
The sale was a part of Cornish’s efforts to give attention to the South Crofty tin undertaking within the UK.