International Minerals Corp (IMZ) has completed the sale of its 3% net smelter return (NSR) royalty on production from Barrick Gold’s Ruby Hill gold mine in Nevada, US, for $38m.

IMZ held the NSR through its acquisition of Metallic Ventures Gold in 2010 for about $60m in a combination of cash and shares.

International Minerals Corp chief executive officer Stephen Kay said, "The proceeds of the sale repay 95% of the recently-matured Cdn$40 million in convertible debentures and help to replenish the company treasury without recourse to any type of debt or equity financing," said Kay.

"In addition, when the $60 million acquisition cost of Metallic is off-set against the total cash received by IMZ from the Ruby Hill Royalty (totalling approximately $48 million), the net acquisition cost per estimated M&I gold ounce at Goldfield and Converse is less than $2, excluding the benefit of any of the inferred resources."

Since the Metallic acquisition, the company has received approximately $9.5m in aggregate royalty payments from the Ruby Hill Mine.

IMZ has also acquired the Goldfield and Converse advanced exploration gold properties, both in Nevada.

The properties are said to host deposits with combined measured and indicated mineral resources estimated at 6.4 million ounces of gold and inferred resources of approximately 900,000 ounces of gold.

A feasibility study for an open pit, heap leach operation at Goldfield is slated to be completed in 2012 and a feasibility study for a similar type of mining operation at Converse is expected to be complete by the end of 2013.