Beowulf Mining offloads Grundtrask gold licences

Mineral exploration and development company Beowulf Mining announced the divestment of its Grundtrӓsk gold exploration licences on Friday.

The AIM-traded firm confirmed it has divested its Grundtrӓsk nr 6 and nr 7 gold exploration licences to Erris Resources Limited.

It described Erris as a private exploration and development company, founded in 2013 by David Hall, Chairman of Horizonte Minerals and founder of Stratex International.

The cash consideration paid by Erris is deferred, Beowulf said, and it will receive a first payment of $200,000 on announcement by Erris of an independently audited JORC Code compliant indicated resource of 100,000 ounces of gold.

Additionally, a second payment of $2 per ounce will be paid on announcement by Erris of an independently audited JORC Code compliant indicated resource for Grundtrӓsk of at least one million ounces.

Finally, a 1% net smelter royalty payment has been agreed for gold produced from the licence areas being transferred to Erris, which also holds the right to buy back the NSR for $2m.

The company has applied to the Mining Inspectorate of Sweden for a transfer of the licences to Erris, with the transfer conditional on approval by the Mining Inspectorate.

“I am very pleased to announce the divestment of Grundtrӓsk to Erris,” said CEO Kurt Budge.

“Beowulf rationalised its exploration portfolio in 2015, reducing the total area held and associated running costs, while maintaining the most interesting parts of Grundtrӓsk.

“Grundtrӓsk has remained a non-core asset to Beowulf, and, in Erris, we have found a company with the ambition and requisite expertise to advance our mutual interests and potentially realise value from these licences.”