Aurion Resources (TSX-V:AU) told investors it has signed a formal definitive option agreement with Kinross Gold Corporation (TSX:K), granting it the right to earn up to an undivided 70% interest in its Launi East Property.
Under the terms of the agreement, Aurion said Kinross can earn the 70% interest by incurring a minimum of US$10 million in exploration expenditures on or before the seventh anniversary of the agreement dated August 21st, 2023.
The 42.74 square kilometre property is located to the southeast and adjacent to Aurion’s 100%-owned Risti Property.
Subject to receiving all necessary permits for a drilling program, the company said Kinross has agreed, as a firm obligation, to incur a minimum of US$2 million in exploration expenditures on, or before the second anniversary of the agreement.
"We are pleased to extend our excellent working relationship with Kinross and their first-class exploration team on the Launi East property," Aurion CEO Matti Talikka commented.
"The company staked the Launi East Property in 2018 and has since completed a significant amount of surface, geophysical, geochemical work on the property, as well as limited drilling. We welcome the Kinross team to build upon the work completed and unlock value from the property."
Aurion noted that should its own interest in the joint venture be diluted to 10% or less, it will be converted to a 2% net smelter return (NSR) royalty on the property. Kinross may purchase one-half of the royalty to reduce the royalty to 1% of net smelter returns for US$2 million.
Silaskaira Property
Separately, Aurion said Kinross informed it of the termination of the option agreement on the Silaskaira Property. It will now regain full ownership of the property and related data.
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