This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

EMC Sells Springer Tungsten Mine For US$5M, Clearing Path To Focus On Developing Scandium Projects In Australia And Norway

Stocks in this article: EMC

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.”

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs