Prospect generator and resource property bank Globex said it has agreed with NSGold to reduce its gross metal royalty (GMR) – that's a cut taken on the metal produced – on its Mooseland Gold mine in Nova Scotia from 4% to 2%.
The companies also agreed to eliminate the potential 5% share issuance upon reaching production in exchange for the immediate issuance of more than 1.74 million shares of NSGold – or an 11.1% interest.
Globex says it expects that the reduction of the royalty will advance the potential of the Mooseland Gold deposit's advancing toward production.
Mooseland is a Meguma-type gold deposit with a NI 43-101 inferred resource of 2.52 million tonnes, grading 5.6 g/t (grams per tonne) gold at a cutoff grade of 2.6 g/t for 454,000 contained ounces of gold.
Globex Mining shares in Toronto were unchanged at $0.32.
Contact Giles at [email protected]
Follow him on Twitter @Gile74