Euro Sun Mining Inc (TSX:ESM, OTC:CPNFF) announced that it has entered into a net smelter return (NSR) royalty agreement with certain purchasers (holder) for its Rovina Valley project in Romania.
The resource exploration and development company said the holder has acquired a 1.0% NSR royalty for C$4.0 million, with C$2.0 million paid as of the date of the agreement and the remainder to be paid within nine months.
Euro Sun noted it has the right, on behalf of the holder, to sell the royalty to a third-party purchaser subject to minimum purchase prices by such third-party.
It added that should the company exercise the royalty sale right, it agrees to grant to the holder a 0.5% NSR royalty on all copper produced at the property.
As well, Euro Sun stated that in connection with the sale of the royalty, the company granted 32 million common share warrants to the holder, which shall vest only upon the company’s exercise of the royalty sale right.
Each warrant will entitle the holder to acquire one additional company common share at an exercise price of C$0.125 per share until August 25, 2028, representing a significant premium to the current market price of Euro Sun Mining’s common shares, according to the company.
Euro Sun Mining is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second-largest gold deposit in Europe.
Contact Sean at sean@proactiveinvestors.com
