EMC Metals Corp. (the “Company” or “EMC”) (TSX:EMC)
announces that it has entered into a binding letter of intent to sell 100% of its interest in the Springer Mining Company, including all related mine, mill and tungsten resource assets (“Springer”), to America’s Bullion Royalty Corp. (“AMB”), along with certain other Nevada properties, for US$5 million cash. The terms of the sale provide for an immediate and full repayment of a matured US$3 million loan that was secured with the Springer assets.
The other EMC properties included in this purchase are the Copper King (tungsten) Property in Pershing County, Nevada, and the Carlin Vanadium Property in Elko County, Nevada.
Over several years, EMC evaluated options for the Springer mine and searched for JV partners to support a restart of operations, as well as for outright sale opportunities. The Company commissioned and published updated NI 43-101 reports expanding mineral resource estimates on the property and demonstrated viable project economics in a Preliminary Economic Assessment (“PEA”). This sale transaction for the Springer asset ultimately presented itself as the best opportunity in this current market to resolve a substantial maturing debt obligation, and move forward with other projects.
On completion of the sale transaction, together with earlier reported transactions on ranch and water assets associated with Springer, the Company will have eliminated essentially all third party debt. The sale will restore EMC’s balance sheet, substantially reducing quarterly cash burn rates, and will supply cash resources to pursue two 100%-owned scandium projects, and other specialty metals opportunities.
Mr. George Putnam, CEO of EMC Metals comments:
“We set two critical goals for EMC in January of this year; (1) regain a majority control of the Nyngan Scandium Project, by court order or negotiation, and (2) resolve our Springer Tungsten asset ownership and development, either by JV or sale, including eliminating the associated maturing debt. The agreement for the sale of Springer resolves the second of these two key objectives, having already recovered and announced 100% control of Nyngan in February 2013. Achieving both of these major milestones now clears a path for the Company to focus on building our scandium assets in Australia and Norway into a viable and profitable enterprise for shareholders and waiting markets.”