Elemental Royalty (ELE) said Friday it signed a definitive option and earn-in agreement for three exploration licenses in Serbia's Bor mining district with a BHP (BHP) unit.
The projects are owned by Elemental's Serbian unit Magma Resources doo and BHP will have the option to buy Magma in exchange for cash payments and by satisfying work commitments, Elemental said.
Elemental said it will keep 2% NSR royalties on the projects and other considerations.
Under the deal, BHP can acquire and retain a 100% stake in Magma and the projects by paying $200,000 to Elemental on the six-month anniversary of the agreement, by making annual payments of $200,000 to Elemental until the earn-in is complete, and by completing $5 million in exploration spending on the projects within five years, Elemental said.
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