Metals One said it has received the first stage payment of £250,000 from Gunsynd, with it to receive shares equivalent to 6.25% of the voting rights of Metals One Finland.
The payment represents the first stage of Gunsynd's commitment to subscribe for 25% of the voting rights of Metals One Finland, at an aggregate subscription price of £1,000,000, the statement added.
Metals One Finland’s main asset is the Black Schist project on the Rautavaara licence, with an inferred mineral resource of 28.1 Mt of mineralised material of a type similar to the nearby Talvivaara mine at a grade of 0.19% nickel (53,800t), 0.10% copper (27,900t), 0.01% cobalt (3,400t) and 0.38% zinc (180,000t).
As the operator at Black Schist, Metals One Finland will use Gunsynd’s money to carry out exploration work comprising an initial review and modelling of the existing data, geophysical surveys and drilling programmes at the Rautavaara and Paltamo licences.
Alastair Clayton, Metals One chairman, commented: "Metals One is in the advantageous position of being carried to a large extent on two work programmes on its assets in both Norway and Finland.
“We are already in advanced negotiations with key contractors with a view to a rapid commencement of field activities at the Metals One operated Black Schist Project, targeting resource growth on this Finnish asset which sits adjacent to Europe's largest nickel mine - Talvivaara.”