Advance Metals Sells Canada Project for Over CA$5 Million in Cash; Shares Fall 4%
MT Newswires Live
Feb 16
Advance Metals (ASX:AVM) sold its Elko Coking Coal project, held by its unit Pacific American Coal, to Elko Metallurgical Resources, according to a Monday filing with the Australian bourse.
Under the deal, the company will receive CA$250,000 in cash upon completion, and CA$2.5 million in cash upon the grant of a mining license and all other regulatory permits, the filing said.
The company will also receive another CA$2.5 million in cash once the project reaches commercial production of 2 million tonnes per annum, the filing added.
AVM will also earn royalty on coal produced and sold from the project, the company said.
Shares of the company fell 4% in recent Monday trade.
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