Aurelius Minerals Inc (TSX-V:AUL, OTCQB:AURQF) said it has terminated the master transaction agreement between it and a fund managed by Sprott Resource Lending (TSX:SIL) Corp, by delivering US$7.2 million in deferred payments.
The agreement with Sprott was initially signed in February 2020, and the payment was done in connection with Aurelius’ acquisition of the Aureus Gold properties.
The termination of the master transaction agreement and the termination release of the security documents puts Aurelius on a positive financial footing to advance its Aureus Gold properties in northeastern Nova Scotia and Mikwam and Lipton properties located northeast of Timmins, Ontario, according to the Toronto-based company.
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Mark NJ Ashcroft, CEO of Aurelius, said issuing a 0.6% net smelter return (NSR) royalty to Sprott eliminates the need to allocate capital against future deferred payments and reduces the burden on the company.
“We are pleased that Sprott recognized this hurdle and worked with us in arranging an equitable solution for both parties. The acquisition of the Aureus East property has been very successful and in a short period of time we have completely reinterpreted the geological model, identified significant gold mineralization and established a maiden resource. We look forward to continued success on the ground," Ashcroft said in a statement.
The NSR royalty is subject to final acceptance of the TSX Venture Exchange.
Contact the author at susie@proactiveinvestors.com