Greenstone Resources (GRE-T) will boost to 100% from 80% its interest in the private Nicaraguan corporation Hemco-Nicaragua.
Hemco-Nicaragua owns the Bonanza, Siuna and Rosita mining concessions, all of which are in northeastern Nicaragua. In exchange for the remaining 20% interest, Greenstone will concede a 3% net smelter return royalty (NSR) on the Bonanza concessions, a 2% NSR on the existing Siuna reserves and a 1% NSR on the rest of Hemco’s concessions.
In addition, Greenstone has the right to buy down the Bonanza and Siuna royalties at any time for US$5 million, with certain previous royalty payments credited against the buy-down price.
Greenstone President Rudi Fronk says the buyout of Hemco-Nicaragua is in keeping with his company’s plan to acquire all outstanding minority interests in the projects it operates.
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