NEW YORK EMC Metals Corp. has sold its interest in Springer Mining Co. to Americas Bullion Royalty Corp. (AMB) for $5 million.
The deal includes the Springer tungsten mine and mill operations, as well as the Carlin vanadium property and Copper King (tungsten) property, all of which are in Nevada.
EMC has been looking to sell its Springer tungsten mine assets or enlist joint-venture partners to support a restart of operations for several years, with the Reno, Nev.-based company aiming to pay off its debt obligations and focus on its scandium assets.
"On completion of the sale transaction, together with earlier reported transactions on ranch and water assets associated with Springer, the company will have eliminated essentially all third-party debt," EMC said. "The sale will restore EMCs balance sheet, substantially reducing quarterly cash burn rates, and will supply cash resources to pursue two 100-percent-owned scandium projects and other specialty metals opportunities."
The Springer tungsten mine and mill is on care and maintenance, although it has been undergoing a $20-million refurbishment and upgrade by EMC over the past four years.
The Carlin vanadium property consists of 72 unpatented mineral claims covering 1,149 acres.
"We are excited to acquire this excellent package of assets at what we consider to be the bottom of the mining cycle," AMB chairman and chief executive officer William M. Sheriff said in a statement. "The breadth and quality of the assets, including the flexibility of the processing plant, offer AMB an unparalleled opportunity to realize the true value of the assets as markets improve and opportunities develop for the divestiture or joint venture of these assets."