Huakan will receive C$5m ($5.1m) and a 2% net smelter returns royalty on any ore milled at the Greenwood mill, up to a maximum of C$9m ($9.2m) over a ten year period.
The Greenwood gold project is comprised of the 200 ton per day Greenwood mill, and the Lexington-Grenoble, Golden Crown, and Lone Star gold/copper properties.
The proposed transaction is expected to be closed on or around May 25, 2011, and is subject to approval by the Company’s shareholders.
The sale will allow Huakan to focus on continuing to advance its 100% owned J&L polymetallic project located near Revelstoke in the province of British Columbia.
