- Pursuit Minerals (PUR) is planning to sell its Scandinavian assets to BMR Group for $3 million
- The sale will allow the company to focus on its Warrior and Gladiator projects in WA
- Pursuit says COVID-19 travel restrictions have prevented it from developing the Scandinavian projects and with BMR being U.K.-based, it has the resources to do develop it further
- Before the sale can go ahead, BMR will need to pay a $50,000 option fee by March 31 and £1.25 million (roughly A$2.2 million) in shares
- BMR is also required to pay A$250,000 in cash once a bankable feasibility study (BFS) has been completed on any of the projects
- Additionally, if and when it makes a decision to mine, BMR will need to pay Pursuit $500,000
- Company shares are down 2.63 per cent and are trading at 3.7 cents
Pursuit Minerals (PUR) is planning to sell its Scandinavian assets to BMR Group for $3 million.
The company formally entered a sale agreement to sell its projects that are based in Finland, Sweden and Norway.
Pursuit claims the sale will allow it to fully focus on its Warrior and Gladiator projects in WA.
“The strategic sale of the Scandinavian projects has come at an optimum time, freeing up the company’s resources and capital to focus on our Australian projects, in particular the Warrior Project,” Pursuit CEO Mark Freeman said.
Unfortunately, COVID-19 travel restrictions have prevented Pursuit from progressing these projects. Therefore, Pursuit says the sale makes sense as BMR, a U.K.-based company, has the resources and is in an area where it can develop the Scandinavian projects.
Before the deal can be completed, there are a number of conditions. BMR will need to pay a $50,000 option fee that will expire on March 31 2021 and £1.25 million (roughly A$2.2 million) in shares.
If the transaction isn’t completed by the end of the March quarter, BMR can extend the option for another six months for $60,000.
The U.K. miner is also planning to raise £1.5 million ($2.65 million) to fund exploration at the project.
BMR will also need to pay A$250,000 in cash once a bankable feasibility study (BFS) has been completed on any of the projects. The BFS also has to show an internal rate of return (IRR) of at least 25 per cent.
Finally, another $500,000 is payable once a decision to mine has been made.
Pleasingly, Pursuit and its shareholders will retain the opportunity to be involved in the growth of the European projects through BMR.
Company shares are down 2.63 per cent and are trading at 3.7 cents at 2:02 pm AEDT.