(Kitco News) - First Mining Gold (TSX: FF) announced today that it has entered into a definitive royalty purchase agreement with an affiliate of Sprott Resource Streaming and Royalty to sell its 1.5% net smelter return (NSR) royalty on the Goldlund gold property in Ontario for total cash consideration of approximately C$9.5 million.
"We are very excited to announce the sale of our Goldlund royalty to Sprott," stated CEO Dan Wilton. "Sprott is an existing royalty holder across the Goliath Gold Complex with a deep understanding of the project and this transaction is a further endorsement of the potential of the asset. First Mining continues to retain exposure to the success of the project as the largest shareholder of Treasury Metals while the proceeds from this royalty sale will provide the company with additional financial flexibility as we continue to focus on advancing our two flagship assets, Springpole and Duparquet."
The company said that following the completion of the Goldlund royalty transaction, its royalty portfolio will be comprised of 20 royalties across four countries, which includes a 2.0% NSR royalty on the Pickle Crow gold project in Ontario, a 1.5% NSR royalty on the Hope Brook gold project in Newfoundland, and NSR royalties on a number of other exploration and development projects.
First Mining is a gold developer advancing two of the largest gold projects in Canada, the Springpole gold project in northwestern Ontario, where the company has commenced a feasibility study and permitting activities are on-going, and the Duparquet, Pitt and Duquesne gold projects in Quebec, a collection of advanced stage development assets located on the Destor-Porcupine Fault in the prolific Abitibi region.
|
| Ascot arranges C$200 million financing for construction of the Premier gold project |
