EMC Metals Corp. (TSX:EMC) has settled its dispute with Jervois Mining Limited in an out of court settlement that transfers 100% ownership and control of the Nyngan Scandium project to EMC in return for A$2.6M and a percentage royalty payable to Jervois on 1.7% of sales price for scandium and any other products produced from the site.
As quoted in the press release:
Highlights of Settlement:
- EMC obtains 100% of the Nyngan scandium property, rights and exploration tenements,
- EMC agrees to pay Jervois A$2.6M in cash, with completion no later than June 2014,
- Exploration tenements formally transfer on final payment, but EMC has the right to proceed with development and implementation of the project now,
- Jervois retains a production royalty on the Nyngan project of 1.7% of sales price for scandium and any other products produced from the site,
- The production royalty extends for a term of 12 years, from first production date,
- A minimum annual royalty applies, based on 10 tpa scandium production, and
- The settlement is subject to FIRB approval (EMC 100% ownership)
EMC Metals CEO George Putnam said:
We are truly excited to resolve this dispute over Nyngan, to establish full control over the project, and to get back to the business of developing this scandium project. We have work to do to re-establish our position in the markets and update and file our Technical Report on SEDAR, but achieving 100% project control and ownership delivers the opportunity to fast track this project to serve waiting markets.