With a $9-million private placement now closed, Equinox Resources (TSE) is on its way to buying the Rosebud gold project, in Nevada, from Lac Minerals (TSE).
The purchase price for the 51% interest is US$5.5 million. Equinox already owns 49%.
In addition to the $9-million placement, Equinox agreed to sell a 2.5% net smelter return on the property to a third party for US$3 million. The sale is subject to completion of a due diligence review and includes an option to buy a further 1.5% net smelter return for US$2.5 million.
If, for some reason, the royalty sale does not close, Lac has agreed to accept US$3 million in cash plus a 2.5% net smelter return for its 51% interest.
At last report, Rosebud was estimated to host a probable resource of 1.8 million tons grading 0.33 oz. gold per ton.
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