Cornish Metals has closed a royalty interests sale on the Mactung and Cantung tungsten projects in Northern Canada to Elemental Altus Royalties.
The sale has a total consideration of $4.5m (C$6.23m). The first payment of $3m has been made to Cornish.
The agreement, initially announced in June 2024, stipulates that Elemental Altus pays Cornish Metals an additional $1.5m in 12 months after the closing of the transaction.
The royalties were acquired by Strongbow Exploraion in March 2016 from Teck Resources. Strongbow Exploration announced its name change to Cornish Metals in July 2020.
Elemental Altus also signed an agreement with Teck Resources and assumed the obligation to pay deferred consideration of C$1.5m to Teck after a development decision at the Mactung project or the recommencement of production at the Cantung project, whichever is earlier.
The royalties include a 4% net smelter returns (NSR) royalty on the Mactung tungsten project.
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By GlobalData
The Mactung project, straddling the Yukon and Northwest Territories border, is in an advanced exploration stage.
The sale includes a 1% NSR royalty on the Cantung tungsten project in western Northwest Territories. Cantung had a history of intermittent operation from 1962 until its closure in 2015.
Cornish Metals interim CEO and director Ken Armstrong earlier said: “The sale of the Mactung and Cantung royalties follows Cornish Metals’ recently announced sale of the Nickel King project and further demonstrates our priority and focus on advancing the company’s wholly owned and fully permitted South Crofty tin project, in the UK, towards commencement of production in 2027.”
In June 2024, Cornish agreed to sell its 100% interest in the Nickel King and Opescal Lake properties (together called the Nickel King Property) to Northera Resources for up to C$8m.
The sale was part of Cornish’s efforts to focus on the South Crofty tin project in the UK.
