The consideration paid for the royalty termination was $1.6 million in cash plus 7 million shares in Galena.
Using the July feasibility study metrics, terminating the royalty is expected to save over $40 million over the life of mine, much higher than the estimated $3.5 million cash and shares payment.
This is yet another strategic initiative implemented by Galena to add value to the Abra Project.
The removal of this 1.125% royalty lowers total non-government royalties on Abra to 2.375%.
Recent board appointment
In late November 2019, Galena appointed mining and chemical engineer Stewart Howe as a non-executive director.
Howe has considerable senior management experience in the global lead-zinc industry.
His skills will be employed as the Abra Base Metals Project moves through the development phase and into production.