Newrange Gold Corp (CVE:NRG) (OTCQB:NRGOF) signed a US$1 million share purchase agreement to sell its Colombian subsidiary Corporacion Minera de Colombia (CMC) to private Australian mining company Andean Mining Corporation Pty Ltd.
The company received US$250,000 in an advance payment, with the remaining $750,000 to be paid after nine months. Andean has also issued 15% of its share capital to Newrange and intends to proceed with a listing on the Australian Stock Exchange.
Andean previously held an option on CMC’s El Dovio Project, which was terminated when the deal was signed. Newrange will retain a 2% net smelter return on the project, capped at US$6 million.
“We are pleased to have concluded this transaction with Andean,” CEO Robert Archer said in a statement. “Having sold our Yarumalito Project in December 2019, this concludes the monetization of our non-core Colombian assets, provides non-dilutive funding for our active projects in Nevada and Ontario, and eliminates the monthly costs of maintaining a presence in Colombia.”
Newrange is a precious metals exploration company with near-to-immediate-term operations in Nevada, Colorado and Ontario. The company’s flagship Pamlico Project in Nevada has seen numerous drill intercepts of near surface oxide gold mineralization up to 340 grams of gold per metric ton.
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