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Sinclair Gold Locks In $3.4M Sala Deal, Mt Henry Stays Front
Replacing a non-binding arrangement, the new deal reserves up to $3.4M in cash, shares, and exploration spending for Sinclair at Sala – freeing the company to pour proceeds into its 915,000-ounce Mt Henry gold project in WA.
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Sinclair Gold (ASX: SGC) has replaced its preliminary agreement on the Sala project in Sweden with a binding earn-in deal that could deliver up to $3.4 million in combined cash, shares, and exploration spending – all while leaving the company's principal focus on its Mt Henry gold project in Western Australia.
The counterparty is Medaro Mining, which can earn a full 100% interest in Sala through staged payments and exploration commitments. The first stage requires Medaro to spend at least C$750,000 on exploration within a year and pay Sinclair C$250,000 plus 250,000 shares. A second stage adds C$1 million in exploration, another C$500,000 cash, and 300,000 shares for a 90% interest. The final 10% costs another C$500,000 and 400,000 shares.
If Medaro does not complete stage one, its 50% joint venture interest in the newly formed Swedish entity transfers back to Sinclair, giving Sinclair full control again. The structure also includes a 1% net smelter return royalty when Medaro reaches 90%, stepping up to 2% if Medaro takes the whole project.
Sinclair's joint venture interest is free-carried by Medaro through to delivery of a Mineral Resource Estimate, and Medaro will run the joint venture.