- Gold Mountain Mining (GMTN) secures silver royalty agreement with Silver Crown Royalties (SCR)
- SCR purchased a royalty on 45 per cent of gross silver proceeds from Gold Mountain’s Elk Gold Project, with an option to increase the royalty to 90 per cent
- Consideration is up to C$3,300,000
- Gold Mountain is a British Columbia-based gold and silver exploration and production company
- Gold Mountain Mining (GMTN) stock opened unchanged trading at $0.18 per share
Gold Mountain Mining (GMTN) secures silver royalty agreement with Silver Crown Royalties (SCR).
SCR is a private pure silver royalty company focusing on silver-as-byproduct credits.
SCR purchased a royalty on 45 per cent of the gross silver proceeds from the company’s Elk Gold Project in British Columbia.
Consideration includes C$1,250,000 in cash and 250,000 units of SCR priced at $0.20. Each unit consists of one common share and one-half of one warrant exercisable to acquire an SCR share for $0.40 for 24 months from the date of issuance.
SCR will be required to issue the company up to eight bonus payments of $250,000 each upon Gold Mountain achieving certain production milestones measured on a trailing annualized basis for six consecutive calendar months:
- Sale of 6,666 contained ounces of silver
- Sale of 8,888 contained ounces of silver
- Sale of 11,110 contained ounces of silver
- Sale of 13,332 contained ounces of silver
- Sale of 15,554 contained ounces of silver
- Sale of 17,776 contained ounces of silver
- Sale of 19,998 contained ounces of silver
- Sale of 22,220 contained ounces of silver
SCR will also compensate Gold Mountain if it discloses measured, indicated and inferred silver ounces in excess of 2,210,000 ounces (the total number of in-situ silver ounces as disclosed in the company’s existing technical report). Payment will be the lesser of $1.00 and 20 per cent of the then average silver price for each excess ounce of silver.
SCR may increase the royalty to 90 per cent in the next ten business days for $1,250,000 in cash and increased contingent production bonuses up to $4,000,000.
Gold Mountain retains the right to repurchase 50 per cent of the royalty for the purchase price and any bonuses paid.
Gold Mountain is a British Columbia-based gold and silver exploration and production company focused on the development of its Elk Gold Project.
Gold Mountain Mining (GMTN) opened unchanged trading at $0.18 per share.
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