Asian Mineral Resources (AMR) has entered into a net smelter royalty (NSR) return agreement with Cobalt 27 Capital Corp related to the sale of cobalt by AMR from its Ta Khoa concession in Vietnam.
Under the terms of the NSR agreement, AMR will receive C$300,000 equivalent in common shares of Cobalt 27 in exchange for granting Cobalt 27 a 3% net smelter return on sales of cobalt from the Ta Khoa concession.
The price per common share will be equal to the price per common share offered by Cobalt 27 pursuant to its offering of common shares under its preliminary prospectus dated April 21, 2017.
Receipt of the common shares from Cobalt 27 as payment and the effectiveness of the NSR agreement are dependent on certain matters being completed, including the receipt of material third party consents and the closing of the Cobalt 27 offering, on or before September 30, 2017.
AMR owns and operates one of the world’s few sources of nickel sulphide ore, and is exploring for additional high-grade nickel assets in Vietnam.
AMR commenced commercial production from its 90%-owned Ban Phuc Nickel Mine in Vietnam in mid-2013. As of June 30, 2016, the mine had produced a total of about 20,000 tonnes of nickel and about 10,000 tonnes of copper contained in concentrate, plus a cobalt by-product since the beginning of its mine life. Mining and processing operations at Ban Phuc were suspended in September 2016 and operations were transitioned to a care and maintenance scenario.
In addition to in and near-mine expansion projects, Ban Phuc provides a platform from which AMR can continue to focus on developing a new nickel camp within its 150sqkm of concessions throughout the highly-prolific Song Da rift zone, where AMR has a number of advanced-stage nickel exploration targets.
Asian Mineral Resources