Cornish Metals Inc has entered a binding US$4.5 million (£3.8m) sale of its royalty interests on the Mactung and Cantung tungsten projects in Northern Canada.
PAYMENTS
The agreement with Elemental Altus Royalties Corp follows the sale of the Cornish Metals’ Nickel King project, reflecting the Canadian company’s focus on its South Crofty tin project.
Start of production is targeted for 2027.
On close of the transaction Elemental will pay Cornish Metals $3m and $1.5m after 12 months.
Elemental will also pay Teck Resources Ltd a deferred C$1.5m relating to development or production decisions at Mactung and Cantung.
Cornish Metals acquired the royalties for C$1.5m in March 2016.