Carlton Management has agreed to complete the mill in return for a 40% interest in the mill and a 40% net profit interest in the property. Augmitto had to place the project on a care and maintenance basis after a financing failed to close late last year.
Carlton has also agreed to purchase some of the mill equipment for $1.5 million. Augmitto retains a buy-back option granting it the right to buy the equipment back within five years at fair market value.
Augmitto also says that Carlton will try to complete a best efforts financing. Augmitto hopes to raise $1.5 million from a private placement of shares at 50 cents per share.
The deal with Carlton remains subject to regulatory and board approval. Carlton’s deal also remains subject to satisfactory metallurgical testing.
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