Boliden has signed an agreement with Ascot Resources regarding the sale of its mineral rights and other assets associated with the Premier Gold Mine in western Canada.

Pursuant to the agreement, Boliden will sell the mineral rights, land, permits, licences and other assets it holds in connection with the Premier Gold Mine to Ascot Resources Ltd.

Boliden will receive a purchase price of CAD 4.8 million (plus an additional CAD 1 million due to the concurrent exercise of an option held by Ascot to purchase additional mineral rights) and a royalty of 5 per cent of any future mine production. The effect on Boliden’s operating result is estimated to approximately CAD 5 million.

In addition, Ascot will assume all obligations and liabilities in connection with the Premier Gold Mine. The completion of the transaction is subject to, among other things, obtaining consents and approvals from governmental authorities in Canada with respect to the transfer of the various permits and licences.

Premier Gold is currently an inactive mine in British Columbia, Canada. Boliden has been carrying out reclamation and maintenance obligations for the mine.