The sale price of US$5mln includes US$100,000 already received and up to US$3mln of future royalty payments.
The sale has been in the works for nigh on a year and chairman Andrew Bell said today’s news was a good outcome to a long process.
“Our key objective, as any buyer was likely to want to back-end some payments given the investment required to upgrade the assets, was to find a technically competent buyer, specialised in this type of mining and in this region, and with a record of success. Though a seller, we also looked for the same qualities of character and skill we would look for in a partner, since we would remain to some degree co-venturers,” Bell said.
CML is represented by James Randall Martin, an experienced mining executive who was the chief executive of Colombia Goldfields Ltd and was the founder and chairman of Nicaraguan gold producer Hemco.
“Mr Martin and the purchasing group at CML combine geological and engineering skills with a historic knowledge of El Limon, as well of as the regional potential for sourcing additional ore for the plant,” Bell said.