EMC Metals Corp. (TSX:EMC) entered into a binding letter of intent to sell 100% of its interest in the Springer Mining Company, including all related mine, mill and tungsten resource assets, to America’s Bullion Royalty Corp., along with certain other Nevada properties, for US$5 million cash. The terms of the sale provide for an immediate and full repayment of a matured US$3 million loan that was secured with the Springer assets.
As quoted in the press release:
The other EMC properties included in this purchase are the Copper King (tungsten) Property in Pershing County, Nevada, and the Carlin Vanadium Property in Elko County, Nevada.
On completion of the sale transaction, together with earlier reported transactions on ranch and water assets associated with Springer, the Company will have eliminated essentially all third party debt. The sale will restore EMC’s balance sheet, substantially reducing quarterly cash burn rates, and will supply cash resources to pursue two 100%-owned scandium projects, and other specialty metals opportunities.
EMC Metals CEO George Putnam said:
We set two critical goals for EMC in January of this year; (1) regain a majority control of the Nyngan Scandium Project, by court order or negotiation, and (2) resolve our Springer Tungsten asset ownership and development, either by JV or sale, including eliminating the associated maturing debt. The agreement for the sale of Springer resolves the second of these two key objectives, having already recovered and announced 100% control of Nyngan in February 2013. Achieving both of these major milestones now clears a path for the Company to focus on building our scandium assets in Australia and Norway into a viable and profitable enterprise for shareholders and waiting markets.