TORONTO, ONTARIO--(Marketwire - Sept. 20, 2012) - Nuinsco Resources Limited ("Nuinsco" or "the Company") (TSX:NWI) today announced that it has entered into a royalty purchase agreement with an arm's-length third party to sell the Company's 3% net smelter return royalty (the "Royalty") on Coventry Resource Limited's ("Coventry") Cameron Gold Project located southeast of Kenora in northwestern Ontario for cash proceeds of $5.1 million.
Conditions to closing are typical for a transaction of this type, including completion of legal due diligence, regulatory approvals and receipt of required consents. The Company acquired the Royalty as part of its sale of the Cameron Gold Project to Coventry in 2010. Closing of the transaction is expected before the end of September, 2012.
About Nuinsco Resources Limited
Nuinsco is a growth-oriented, multi-commodity mineral exploration company that is focused on world-class mineralized belts in Canada and internationally. In addition to its property holdings in Ontario, Saskatchewan and Turkey, Nuinsco owns common shares in Coventry Resources Limited (ASX:CVY) and Victory Nickel Inc. (TSX:NI), and a 50% interest in CBay Minerals Inc., a private company that is a dominant player in Quebec's Chibougamau mining camp with assets including a permitted mill and tailings facility, eight past producing copper/gold mines and a 96,000 acre land position. Shares of Nuinsco trade on the Toronto Stock Exchange under the symbol NWI.'
Nuinsco are a large CVY holder.
If someone has paid $5 million+ for a smelter royalty they are very confident that cvy's cameron project is a certainty to reach producer status.
this latest piece of the puzzle is almost certainly related to the big moves from Sun Valley and Palmedo to load up this week, and the general surge in price and volume.
This will have to be ann'd by CVY. The identity of the purchaser of the smelter royalty will be very interesting...
CVY Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
