JOHANNESBURG (miningweekly.com) – Copper miner Atalaya Mining has agreed to acquire a royalty over the Proyecto Riotinto project, in Spain, from Rumbo 5-Cero for $4.75-million.
The purchase price will be settled through the issue to Rumbo of 1.69-million shares in Atalaya.
Under the terms of the original royalty agreement, Rumbo had been entitled to receive a royalty payment of up to $250 000 a quarter, if the average copper sales price or London Metal Exchange price for the period is equal to or above $2.60/lb for ten years, up to a maximum amount of $10-million.
Atalaya on February 13 issued new ordinary shares in the company to satisfy the two first instalments due under the royalty agreement.