Halo Resources sells Bachelor Lake NSR for $1.2m

Apr. 05, 2011 3:30 PM ETSHLO

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Halo Resources (CVE:HLO) said Tuesday it has sold its 1% net smelter return (NSR) in the Bachelor Lake Mine property to Calgary-based Gold Royalties Corp for $1.2 million.

Halo acquired the interest in 2007, with Metanor Resources, the owner of the Quebec-based property, retaining the right to purchase half of the net smelter return for $0.5 million.

Halo said that Metanor has increased the capacity of the Bachelor Lake mill to 1,200 tonnes per day, but production has not yet begun from the underground areas, where Halo's interest would have applied.

Under the terms of the sale agreement, in addition to the $1.2 million consideration, Gold Royalties has also agreed to pay Halo 40% of the value of any NSR payments paid for more than 200,000 ounces of gold.

As of January, Metanor announced that proven and probable underground reserves at Bachelor Lake stood at 200,177 ounces of gold.

Halo's main focus is the 200 square kilometre Sherridon VMS Property, a combination of mature and grassroots volcanogenic massive sulphide (VMS) copper, zinc and gold exploration opportunities.

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