Queenston Completes JV Transaction with Kirkland Gold for $60 Million

Queenston Mining (TSX:QMI) announced the closing of the purchase and sale agreement with Kirkland Lake Gold Inc (TSX:KGI) whereby Queenston will sell its 50% interest in the properties held under Joint Venture with KL Gold located in Teck Township to KL Gold for $60 million cash and a royalty.

As quoted in the press release:

Terms of the sale were a $10 M cash payment received on March 27, 2012, $20 M cash received on closing today and $30 M cash due on December 3, 2012. On closing, Queenston received a promissory note representing the balance of the purchase price payable in the principal amount of $30 M, accruing interest at a rate of prime plus 2.5% per annum, secured by way of a first fixed charge and mortgage on the JV properties that are the subject of the sale, due and payable on December 3, 2012. The Company will receive a royalty on production from the sold properties after the first 1.3 M ounces (oz) of gold have been produced equal to $15/oz of gold for the next 1 M oz produced and $20/oz thereafter.

Click here to view the full press release.