Aurion Resources (TSX-V:AU) Ltd shares got a boost on Wednesday after it announced it has repurchased royalties on its Kutuvuoma and Silasselkä projects.
The Canadian resource company said it had entered into an option agreement with Dragon Mining (ASX:DRA) Ltd to acquire and eliminate all encumbrances on the two properties.
The agreement, which stems from a purchase agreement in 2014, involves a total consideration of €5 million and 37,500 Aurion common shares.
Under the terms of the agreement, Aurion will make an initial payment of 37,500 common shares to Dragon and gain the exclusive right to acquire and eliminate the remaining encumbrances, including a 3% net smelter return royalty.
The total consideration of €5 million can be paid in cash, shares, or a combination of both, at Aurion's discretion, until September 30, 2023.
In a statement, Aurion said that the agreement allows it to consolidate its position in these projects and further advance its exploration efforts.
Shares of Aurion gained 15% on Wednesday morning to hit $0.69 in Toronto.
Vancouver-based Aurion's strategy is to generate or acquire early-stage precious metals exploration opportunities and advance them through direct exploration by its own team or through partnerships and joint venture arrangements.
Aurion's current focus is exploring on its flagship Risti and Launi projects, as well as advancing its joint venture properties with B2Gold and Kinross in Finland.
Contact Angela at angela@proactiveinvestors.com
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