First Mining Gold Corp. (TSX:FF, OTCQX:FFMGF), the gold mine developer, said it is selling its 1.5% non-core net smelter return (NSR) royalty on the Goldlund gold property in Ontario to Sprott Resource Streaming and Royalty Corp (Sprott) for around C$9.5 million in cash.
"We are very excited to announce the sale of our Goldlund royalty to Sprott," said Dan Wilton, the CEO of First Mining Gold in a statement.
"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," he added.
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First Mining is advancing two of the largest gold projects in Canada, namely the Springpole asset in Ontario and the Duparquet, Pitt and Duquesne gold projects on the Destor-Porcupine Fault in the Abitibi region of Quebec.
The firm also owns the Cameron gold project in Ontario and a portfolio of gold project interests including the Pickle Crow gold project (being advanced in partnership with Auteco Minerals), the Hope Brook gold project (being advanced in partnership with Big Ridge Gold Corp), an equity interest in Treasury Metals Inc (TSX:TML), and a portfolio of 21 gold royalties, which will be reduced to 20 following the Goldlund royalty deal, which is expected to close on or before December 31 this year.
These royalties include a 2% NSR royalty on the Pickle Crow gold project in Ontario, a 1.5% NSR royalty on the Hope Brook gold project in Newfoundland and NSR royalties on a number of other exploration and development projects.
Contact the author at giles@proactiveinvestors.com