TORONTO, Aug. 28, 2023 (GLOBE NEWSWIRE) -- Euro Sun Mining Inc., (TSX: ESM) ("Euro Sun" or the "Company") is pleased to announce that it has entered into a net smelter return royalty agreement (the "Agreement") with certain purchasers (together, the "Holder") for the Company's Rovina Valley Project (the "Property").
Pursuant to the Agreement, the Holder acquired a 1.0% net smelter return ("NSR") royalty for consideration of C$4.0 million (the "Royalty"), with C$2.0 million paid as of the date of the Agreement and the remainder to be paid within nine months. Furthermore, the Company has the right, on behalf of the Holder, to sell the Royalty to a third-party purchaser subject to minimum purchase prices by such third-party (the "Royalty Sale Right"). Should the Company exercise the Royalty Sale Right, it agrees to grant to the Holder a 0.5% net smelter return royalty on all copper produced at the Property.
In connection with the sale of the Royalty, the Company granted 32,000,000 common share warrants to the Holder (the "Warrants"), which shall only vest upon the Company's exercise of the Royalty Sale Right. Each Warrant will entitle the Holder to acquire one additional Common Share of the Company at an exercise price of C$0.125 per common share of the Company (the "Common Shares") until August 25, 2028, representing a significant premium to the current market price of the Common Shares.
About Euro Sun Mining Inc.
Euro Sun is a Toronto Stock Exchange listed mining company focused on the exploration and development of its 100%-owned Rovina Valley gold and copper project located in west-central Romania, which hosts the second largest gold deposit in Europe.
Further information:
For further information about Euro Sun Mining, or the contents of this press release, please contact Investor Relations at info@eurosunmining.com
Caution regarding forward-looking information:
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the Agreement, the Royalty, the Royalty Sale Right and development of the Project. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks inherent in the mining industry and risks described in the public disclosure of the Company which is available under the profile of the Company on SEDAR at www.sedar.com and on the Company's website at www.eurosunmining.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
The TSX does not accept responsibility for the adequacy or accuracy of this news release.
