Red Eagle Mining (RD.V) has announced it sold another 1% NSR on a portion of the company’s Santa Rosa Gold project in Colombia to Liberty Metals and Mining for a consideration of $4.16M. This is excellent news as Red Eagle once again is able to raise cash without issuing additional shares. On top of that, the valuation of the Net Smelter Royalty results in a total project value of $416M which is substantially higher than Red Eagle’s current market capitalization, even after applying a severe dilution factor.
Red Eagle has the right to repurchase the 1% NSR for $8.33M within two years from the date of the first gold production.
> Click here to read the press release
Disclosure: The author holds no position in Red Eagle Mining. Please see our disclaimer for current positions.
