Idaho gold junior surges after royalty windfall
Americas Bullion Royalty Corp. (TSE:AMB) shot up 21% on Tuesday after announcing the settlement of a debt and royalty option deal entered into more than a year ago.
The Idaho-based royalty company said in a statement that under the deal with MF Investment with respect to a senior secured facility agreement made September 2012 the full amount owing under the facility agreement will be applied to the purchase price of certain royalties.
The net effect of offloading 18 royalty streams mostly form Nevada mines, is a cash injection of $22.8 million for AMB.
William M. Sheriff, Chairman & CEO said AMB's board "sees great opportunity to build from this cash position in the current market."
By the close the micro-cap was trading up 21.4% at $0.085 on the Toronto big board, in huge volumes. More than 7 million shares versus usual daily volume of 350,000 shares had changed hands on Tuesday.
The $15.5 million company did not escape the carnage in the junior mining sector which have been decimated this year.
AMB, which following the agreement is left with 14 royalty interests and Nevada and Yukon assets including the Brewery Creek project, is down 75% since the start of year.