EMX Royalty Corp V.EMX

EMX to Sell Its Gold Line Project in Sweden

[StockhouseInsider]

EMX will get a 9.9% interest in Gold Line Resources Ltd. ("GLR"), advance royalty payments, and a 3% NSR
https://emxroyalty.com/news/2019/emx-executes-agreement-to-sell-its-gold-line-project-in-sweden-to-gold-line-resources-for-royalty-and-equity-interests/

Terms at closing

• transfer 13 exploration licenses to GLR

 

• GLR will issue a 9.9% equity ownership to EMX; GLR will continue to issue additional shares of GLR to EMX to maintain its 9.9% interest, at no additional cost to EMX, until GLR has raised $5,000,000 in equity; thereafter EMX will have the right to participate pro-rata in future financings at its own cost to maintain its 9.9% interest in GLR.

 

• GLR will reimburse EMX for its 2019-2020 license fees, which total US$101,390.

 

• GLR must raise $600,000 within 6 months of the signing date to fund exploration programs in 2019 on the Project. GLR will then commit to raising another $500,000 within two years of the closing date of the Agreement, and will be responsible for maintaining the Properties in good standing according to Swedish mining regulations.

 

• EMX will receive an uncapped 3% NSR royalty on the Properties. Within six years of the closing date, GLR has the right to buy down up to 1% of the royalty owed to EMX (leaving EMX with a 2% NSR) by paying EMX 2,500 ounces of gold, or its cash equivalent.

 

• EMX will receive annual advance royalty ("AAR") payments of 30 ounces of gold on the Properties, commencing on the second anniversary of the closing, with each AAR payment increasing by 5 ounces of gold per year up to a maximum of 75 ounces of gold per year. These AAR payments may be made in gold bullion, their cash equivalents, or their value equivalent in shares of GLR, subject to certain conditions.