GoGold Resources Inc. signed a definitive agreement with Metalla Royalty & Streaming Ltd. to sell its 2% royalty on the Santa Gertrudis gold project in Mexico for US$12 million, the companies said in separate Sept. 5 releases.
The company can elect to receive US$6 million of the purchase price in Metalla shares at a deemed price of 78 Canadian cents apiece.
GoGold sold Santa Gertrudis to Agnico Eagle Mines Ltd. in late 2017 for US$80 million and was granted a 2% net smelter royalty on the project.
As part of the royalty agreement, Agnico has 45 days to determine if it wants to exercise its right of first refusal to match the offer from Metalla.
The transaction is expected to close in the fourth quarter.