Dublin based exploration company Minmet has sold its Swedish goldming subsidiary Bjorkdal to a Canadia company for an initial $1 million in shares options.
Under the terms of the option agreement between Minmet and Gold Ore Resources Minmet will receive 5.84 million shares in Gold Ore who will take over the project.
Gold-Ore will invest $1.5 million in Bjorkdal in addition to a $500,000 standby loan facility for ongoing operations. Subsequent operating shortfalls would be shared equally by Gold Ore and Minmet.
The exclusive option agreement gives Gold Ore the right but not the obligation until December 31st, 2007 to purchase 100 per cent of the shares of Bjorkdal for $4 million in a combination of shares and cash.
Minmet will retain a royalty of between 0.5 per cent and 1.75 per cent that Gold-Ore may purchase for $1 million at any time after exercising the option.
Minmet's chief executive, Michael Nolan said the deal allows Minmet to become a significant shareholder in Gold Ore in addition to providing significant working capital for new exploration.