AKD Limited and its Canadian partner New Inca Gold have entered into an agreement to sell their interests in the El Molino Cu-Au project in Peru to Canadian company Lumina Copper Corp.
The total consideration payable to AKD and New Inca is $US300,000 cash and a net profits interest of up to 20 per cent depending on the timing of production from the concession.
The NPI converts to a 1 per cent NSR royalty if production commences after 2006.
AKD is entitled to 50 per cent of the total consideration.
The agreement involves the sale of AKD’s and New Inca’s respective Peruvian registered subsidiaries to Lumina and is subject to certain terms and conditions being met by all parties.
The transaction is anticipated to close within 30 days.