Sale of Bolnisi Copper and Gold Project in Georgia for CAD 7 Million, Board and Management Changes
Empire Metals Limited, the AIM-listed mineral resource exploration and development company, is pleased to announce that it has concluded a definitive and binding Sale and Purchase Agreement (subject to certain conditions) for the sale of the Company’s wholly-owned subsidiary GMC Investments Limited (‘GMCIL’), to Candelaria Mining Corporation (TSXV: CAND) (‘Candelaria’, ‘CAND’ or the ‘Buyer’).
For an all-equity total consideration of 7 million Canadian dollars (“CAD”), with an initial payment of CAD 2 million (the ‘Initial Consideration’) plus additional payments subject to certain milestones being achieved in Georgia (altogether “the Sale”). GMCIL is the owner of a 50% interest in JSC Georgian Copper and Gold (‘GCG’), which in turn holds the rights to copper-gold projects under a 30-year mining concession in Georgia.
Mike Struthers, CEO , said: “This is a great deal for Empire shareholders . Candelaria is a growth story with some excellent gold assets in Mexico, including the Pinos Gold Project which is about to start construction and is scheduled to commence production in 12-14 months. It has a strong technical and operations team on the ground in Mexico. Empire shareholders will benefit from the future production and growth of Candelaria, whilst retaining exposure to the assets in Georgia on which we will continue with our efforts to unlock value.
Empire will continue to develop the Eclipse Gold Project in Australia (refer recent RNSs) and will add additional assets as new opportunities arise. The option to acquire a 75% stake in the Eclipse Gold Project marked an exciting new chapter in the Empire story.
The Company’s efforts to resolve all of the permitting issues in Georgia will continue, and I will personally continue to lead this effort through my new role with Candelaria. I look forward to joining their team, to help further develop the company into a successful junior producer in the precious metals space, for the benefit of both Candelaria and Empire shareholders. I’m also pleased to remain involved with Empire to continue to help build the developing strategy.”
