NewPeak Metals has signed a binding term sheet for the divestiture of its Swedish mineral permits, held by its subsidiary NewPeak Sweden (NSO), to 1459992 BC, a Canadian company led by entrepreneur Emma Fairhurst.

The agreement includes the transfer of permits for several strategic mineral sites in Sweden.

Under the agreed terms, NewPeak will receive C$250,000 ($182,807) in shares of the Canadian company upon the execution of the transaction documents.

Additionally, a milestone payment of C$750,000, either in cash or shares, is set to be made upon the reporting of a JORC Inferred Resource of at least three million tonnes at 0.3% WO3Eq.

NSO holds the Baggetorp, Gänsen, Gubbo, Högfors, Hörken, Sandudden, Yxsjöberg and Yxsjöberg nr 200 permits.

This transaction follows the recent sale of Finland Gold permits and is part of NewPeak’s broader strategy for corporate rejuvenation.

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The sale is designed to provide NewPeak with immediate and staged liquid assets, bolstering the company’s financial position to support ongoing business plans.

Completion of the deal is due to close by 31 August 2024, with the Canadian company expected to assign its rights into a publicly listed entity by the time of closing.

The closure of the transaction is contingent upon standard transaction conditions, including the Canadian company’s satisfaction with the results of its due diligence investigations.

NewPeak chairman Brian Moller said: “The board is most pleased with this outcome, particularly because the Sweden mineral assets came as a no cost addition to the original acquisition of the Finland Gold projects.

“The company outlaid minimal funds on field exploration and resource evaluation, though was pleasantly surprised the results indicated such good potential. We are divesting the Sweden properties as a part of the company’s rejuvenation plans; however, NewPeak shareholders benefit from both the sale process and the exposure to any future project upside via our shareholding in the buyer.

“This completes the exit from Scandinavia, with only the Argentinian Gold assets remaining for divestment. Discussions are under way, though we maintain our position that the Argentine Gold assets have good potential, and we may progress them ourselves.”