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Tournigan Energy and Ortac Resources reports a share purchase agreement to which Ortac was acquiring in stages all of the participation interests of Kremnica Gold, the holder of the Kremnica gold deposit located in Slovakia. In addition, within 60 days of all required permits having been obtained to permit commercial production at the Kremnica property, Ortac will pay …
Tournigan Energy and Ortac Resources reports a share purchase agreement to which Ortac was acquiring in stages all of the participation interests of Kremnica Gold, the holder of the Kremnica gold deposit located in Slovakia.
In addition, within 60 days of all required permits having been obtained to permit commercial production at the Kremnica property, Ortac will pay the Company US$3,750,000 cash or in Ortac shares to the equivalent cash value being $15.00 per ounce of the first 250,000 ounces of gold equivalent (gold plus silver) resource defined as proven and probable reserve in the bankable feasibility study. Ortac will grant the Company a 2% net smelter return (“NSR”) royalty on gold and silver production from the Kremnica property as currently comprised which includes three exploration licenses to a limit of the first 1 million ounces produced after which it will reduce to a 1% NSR royalty on the next million ounces, after which it will extinguish.
Ortac President, Vassilios Carellas says:
“Ortac is pleased to have acquired the Kremnica assets from Tournigan and looks forward to developing a long and fruitful relationship with the local community.”
For complete press release, click here.