Toronto-based Menora Resources (ME) plans to acquire a mill royalty and an option interest in a package of five gold properties in the Czech Republic.

The junior will pay US$200,000 to the Harrison Group of North Bay, Ont., for the royalty; Harrison is purchasing the mill from the Czech government. Under the deal, Menora will receive a royalty of US25 cents per tonne treated on the first 10 million tonnes, and thereafter a royalty of US10 cents per tonne treated to a maximum of 11 million tonnes.

Under its option deal, Menora will swap 4 million shares for a 10% working interest in the five properties. The transaction is subject to a merchant bank pre-spending US$3 million on the properties.

The royalty and working interest are subject to board and regulatory approval.

Delivered by CzechTrade team Canada.
Source: The Northern Miner.