EMX Royalty Corp. said Dec. 13 that it struck a deal to sell its projects in Norway and Sweden to OK2 Minerals Ltd.
The agreement covers EMX's Bleikvassli, Sagvoll and Meråker polymetallic projects in Norway, and the Bastuträsk polymetallic project in Sweden.
In return, EMX will gain a 9.9% stake in OK2, annual advance royalty payments of up to US$60,000 and a 3% net smelter royalty on each of the four projects, with OK2 having the option to buy back a 1% NSR for US$2.5 million within six years from closing.
Consideration also comprises a 0.5% NSR on OK2's new projects in Sweden or Norway, and a 1% NSR on OK2’s Pyramid copper-gold project in British Columbia.
Upon closing, OK2 will undergo a corporate restructuring by share consolidation and change its name to Norra Metals Corp.
For EMX to maintain its 9.9% interest, OK2 is required to issue additional shares, up to a maximum of 13,398,958 shares post-consolidation, until OK2 has raised C$5 million in equity to fund exploration and development on the properties, or until five years upon closing, whichever occurs first.
OK2 must also spend C$2 million on the properties within two years from closing. Otherwise, EMX's stake in the company will rise to 14.9%.
EMX's properties contain historical mining areas and/or drill-defined zones of zinc-lead-copper mineralization with variable levels of silver-gold enrichments.