Metallica Metals (MM) has executed an agreement to purchase 50 per cent NPI on MX Gold's (MXL) MAX Mine and Mill Project.
The interest is calculated on the project's gross cash income.
Metallica will pay C$425,000 in cash and issue an aggregate of 1,000,000 of its common shares for the NPI.
Paul Ténière, CEO and Director of Metallica Metals, commented,
"The purchase of the 50 per cent NPI on the MAX Project dramatically increases the theoretical prospects of economic extraction on the project. Without this encumbrance, Metallica Metals believes that the MAX Project is a highly valuable asset and has become significantly more marketable.
We are very pleased to have completed this transaction and are currently reviewing the strategic direction for this fully-permitted molybdenum mine and mill facility located in mining-friendly British Columbia."
MX Gold is focused on the mining, exploration and development of advanced projects located in the Kootenay region of British Columbia.
Metallica Metals is involved in the exploration of its precious metal-focused portfolio including the Big Mac Property in British Columbia.
MX Gold (MXL) is trading flat at $0.14 per share as of 12:46 pm ET.
Metallica Metals (MM) is trading flat at $0.28 per share as of 11:48 am ET.