Ferrum Crescent Ltd. said Sept. 22 that it has exercised the option to fully acquire lead-zinc exploration projects Toral and Lago in Spain from GoldQuest Mining Corp.
In February, the company secured an option to acquire TH Crestgate GmbH's indirect wholly owned subsidiary, GoldQuest Iberica SL, which owns the projects.
Ferrum Crescent paid £326,500 in cash and issued 100 million new ordinary shares as consideration for the acquisition.
In connection with the acquisition process, GoldQuest, Crestgate, Lundin Mining Corp. and others entered into an agreement with respect to certain residual historic rights held by Lundin and its subsidiary over the Toral license area.
Under the terms, GoldQuest will make a one-off payment of US$2.5 million to Lundin upon proceeding with the construction of a mine, and a further US$5 million following the start of commercial production on the license area.
The Lundin subsidiary will be entitled to a 1.5% net smelter returns royalty on production from the license area.