Altius Minerals Corp. said March 28 that it executed a letter of intent to sell its Sail Pond silver-copper-lead-zinc project in Newfoundland to privately held explorer New Found Gold Corp.
The company will receive 12 million common shares in New Found Gold and a 2% net smelter returns royalty over the project upon closing.
The deal is conditional upon New Found Gold listing its common shares on a recognized Canadian stock exchange and raising at least C$7.5 million via a private placement, of which Altius would invest at least C$1 million.
New Found Gold must also commit to spending C$1 million on exploration within 12 months of closing, including an unconditional nonrefundable commitment of C$250,000 by Oct. 31.
Altius will remain operator of the work program on the property in 2018.
The deal is expected to close by Sept. 30.