Troymet Exploration (TYE-V) to sell Key to New Gold for $2-million - No word on share consolidation?
Nov 19, 2013 - News Release
Troymet Exploration Corp. has entered into an asset sale agreement with respect to the sale of Troymet's 100-per-cent interest in the Key property in British Columbia to New Gold Inc. Pursuant to the proposed transaction, Troymet will sell its 100-per-cent interest in the Key property, along with associated technical information and permits, for a purchase price of $2-million cash. Troymet will also be granted a 2-per-cent net smelter returns royalty (NSR) on the Key property, of which 1 per cent (reducing the NSR from 2 per cent to 1 per cent) can be purchased by New Gold for $2-million cash. In addition, pursuant to the sale agreement, New Gold has committed to spend $1.5-million on the Key property, with a minimum of $500,000 of expenditures on or before Dec. 31, 2014, and the balance of $1-million of expenditures on or before Dec. 31, 2018, subject to certain conditions.
The completion of the proposed transaction is subject to a number of conditions including, approval of the TSX Venture Exchange. The closing of the sale is expected to occur in early December, 2013.
Dr. Kieran Downes, president of Troymet, stated: "We are very pleased to have entered into this agreement with New Gold, which is continuing to advance the Blackwater gold deposit and is the dominant player in the emerging Blackwater district. We anticipate that exploration and development of the Key property will continue to advance under New Gold's direction and the 2-per-cent NSR retained by Troymet will ensure significant benefit to shareholders in the event of a commercial discovery. The sale of the Key property puts Troymet in a strong financial position to advance its 100-per-cent-owned Golden Eagle project, and to pursue other high-impact mineral projects." |
