First Mining Gold Corp. (TSX: FF) has entered into a definitive royalty purchase agreement with an affiliate of Sprott Resource Streaming and Royalty Corp. to sell its 1.5% net smelter return (NSR) royalty on the Goldlund gold property in Ontario owned by Treasury Metals Inc. for total cash consideration of approximately C$9.5 million (US$7 million).
“We are very excited to announce the sale of our Goldlund royalty to Sprott,” CEO, Dan Wilton, said. “Sprott is an existing royalty holder across the Goliath Gold Complex with a deep understanding of the project and this transaction is a further endorsement of the potential of the asset.
“First Mining continues to retain exposure to the success of the project as the largest shareholder of Treasury Metals while the proceeds from this royalty sale will provide the Company with additional financial flexibility as we continue to focus on advancing our two flagship assets, Springpole and Duparquet.”
Following the completion of the Goldlund Royalty Transaction, First Mining’s royalty portfolio will be comprised of 20 royalties across four countries, which includes a 2.0% NSR royalty on the Pickle Crow gold project in Ontario operated by Auteco Minerals Ltd., a 1.5% NSR royalty on the Hope Brook gold project in Newfoundland operated by Big Ridge Gold Corp. and NSR royalties on a number of other exploration and development projects.
The Goldlund Royalty Transaction is expected to close on or before December 31, 2022.
Stifel GMP acted as financial advisor to First Mining.
For further information please visit: https://firstmininggold.com/
