JOHANNESBURG (miningweekly.com) – Mine developer Atlanta Gold has sold its Abitibi gold property, in western Quebec, to Canadian junior miner Vantex Resources.
Atlanta president and CEO Ernest Simmons said on Tuesday that the sale of lower exploration properties allowed the company to focus on developing its Atlanta project and Neal property, both in Idaho, as well as other properties, rather than incurring further expenditure to maintain the Abitibi claims.
Atlanta explained that it had sold its 100% interest in the 13 claims comprising the Bousquet portion of the Abitibi property for 1.25-million common shares in Vantex, as well as a 1% net smelter return royalty.
In addition, Atlanta’s 60% interest in 27 further claims, comprising the Normar portion of Abitibi, had been sold for 2.455-million common shares and a 1% net smelter return royalty on the portion of the claims previously held by Atlanta.
Breakwater Resources held the remaining 40% of the Normar claims; however, Atlanta pointed out that it had obtained consent from Breakwater to transfer the claims to Vantex as well as for the additional 1% royalty to be paid to Atlanta.
In terms of the Normar claims Barrick Gold also currently held a 1% net smelter return royalty and Delfer Gold Mines held a 5% net profits royalty.
“Vantex agreed that it [would] promptly provide notice in writing to the holders of the royalties,” Atlanta said.