TSX-V-listed Graphite One has sold a 1% net smelter royalty (NSR) interest against certain claims that make up part of the Graphite Creek project, in Alaska.
Under the terms of the NSR agreement, Graphite One will issue Ronald Sheardown 456 000 common shares at $1.1 a share for a total consideration of $500 000.
The NSR is applied to future production from 133 Alaska state claims owned or leased by Graphite One.
"This purchase of a 1% NSR brings our total purchases to 3% NSR," said Graphite One founder and CEO Anthony Huston.
" We anticipate the purchase of the NSR will have a positive impact on our internal rate of return and net present value, which will be reflected in the financial projections in our feasibility study."
Two NSRs on the Graphite Creek property remain outstanding: a 5.0% and a 2.5% NSR applicable to certain Alaska state claims, of which 2% of each NSR can be purchased for a total of $4-million, leaving a 3.0% and 0.5% NSR on their respective claims.