Lydian Terminates Newmont Royalty Agreement and Elects FixedTORONTO, April 09, 2018 (GLOBE NEWSWIRE) -- Lydian International Limited (TSX:LYD) (“Lydian” or the “Company”) today announced that it has exercised its option to terminate the royalty agreement with Newmont Overseas Exploration Limited (“Newmont”) and in lieu thereof, elect a fixed payment option.
On April 23, 2010, the Company purchased all of Newmont’s interests in the Company’s joint venture, which included Newmont’s interests in the Amulsar Gold Project. A portion of the consideration included a 3% Net Smelter Return (“NSR”). However, as provided for in the purchase agreement, Lydian has exercised its option to terminate the 3% NSR and in lieu thereof, elected the quarterly payment option to pay to Newmont the aggregate sum of $20 million, without interest, in 20 equal quarterly installments of $1 million commencing on the first day of the third calendar month following the start of commercial production.
Howard Stevenson, President and Chief Executive Officer of Lydian, said, “The termination of the royalty agreement limits Lydian’s financial obligation to Newmont to $20 million over a five-year period, compared to the perpetual 3% NSR for the life of the mine. Newmont is a valued partner of Lydian and the Amulsar Gold Project, and we look forward to continuing our relationship as we bring Amulsar into production later this year.”
https://lydianinternational.co.uk/news/2018-news/419-
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