March 22 (Reuters) - Canadian minerals explorer Northland Resources Inc said it agreed to sell its non-ferrous assets in Sweden to Orex Minerals Inc for $15.5 million in cash and stock, to focus on its iron-ore deposits.
Northland, a development-stage mining company with iron assets in northern Sweden and Finland, had signed a letter of intent regarding the sale with Orex in October, last year.
As per the terms of the deal, which includes sale of its Barsele gold project, Northland will get $5 million in cash over two years, and $3.5 million worth of Orex shares to be issued over a period of four years from signing of the agreement.
Northland will retain a 2 percent net smelter royalty, which can be bought back by Orex at $4 million, it said in a statement.
Vancouver, British Columbia-based Northland’s shares closed up 4 Canadian cents at C$2.97 on Tuesday on the Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Prem Udayabhanu)