Total cash consideration - USD 20 million
Nyrstar NV has announced that it has entered into a Share Purchase Agreement to sell its Campo Morado mine in Mexico to Telson Resources Inc. and Reynas Minas S.A. de C.V. for a total cash consideration of USD 20 million, plus the potential for additional future proceeds through the creation of a new royalty on the Campo Morado mine.
Telson is a Canadian based junior resources company and trades on the TSX Venture Exchange under the symbol TSN. Pursuant to the Agreement, Telson will own 99.9% of the purchased shares while Reynas Minas, a Mexican based mining consulting company, will own the other 0.1%.
The Consideration payable to Nyrstar consists of USD 0.8 million that was paid to Nyrstar upon signing the Agreement, USD 2.7 million payable in cash by the closing of the Transaction, and USD 16.5 million payable in cash on or before the 12 month anniversary of the closing of the Transaction. Closing of the Transaction is subject to customary closing conditions and is expected to occur by Q3 2017.
BMO Capital Markets Limited and Lazard & Co. are acting as financial advisors to Nyrstar in connection with the Transaction.
