SEMAFO will receive from New Dawn Mining a 1% to 1.5% sliding-scale net smelter return ("NSR") royalty on gold produced from the Kiniero plant.
The NSR is capped at $6 million. New Dawn Mining assumes responsibility for environmental remediation, pending and potential litigation in addition to all liabilities.
The divestiture of the Kiniero Mine, a non-core asset, is part of our strategy to focus on cash flow and quality ounces. Kiniero was placed in care and maintenance during the first quarter of 2014.
