Greenwood Gold sale completed
By Contributor
Huakan International Mining Inc. reports that it has closed the sale of its 100 percent interest in the Greenwood Gold Project, located near Greenwood, British Columbia, to Gold Crown LLC and its wholly owned subsidiary, AMT Industries Canada Inc. (together, the “Purchasers”).
The Greenwood Gold Project is comprised of the 200 tonne per day Greenwood mill and the Lexington-Grenoble, Golden Crown, and Lone Star gold/copper mineral properties.
Under the terms of the asset purchase agreement, as amended, the Company has received total consideration of C$7,425,000 and a two percent net smelter returns royalty (subject to reduction to one percent if the price of gold drops below US$1,050) on any ore milled at the Greenwood mill, up to a maximum of $9,000,000 over a ten year period.
The Purchasers have also agreed to make annual minimum net smelter royalty payments of $500,000 and will make a lump sum payment at the end of the ten year period, if necessary, to bring the total net smelter royalty payments to $9,000,000.
The sale of the Greenwood Gold Project assets will enable the Company to focus its resources on its J&L precious and polymetallic metals property located near Revelstoke, BC and potential new mineral property acquisitions.
Press release from: VANCOUVER, BRITISH COLUMBIA, MARKETWIRE via COMTEX.
