Dragon Mining (ASX:DRA) has executed the Definitive Purchase Agreement with Aurion Resources (TSX-V:AU) for the sale of its Kutuvuoma and Silasselkä gold projects in northern Finland.
In consideration, Dragon will receive 6 million Aurion shares, and Aurion will expend EUR 1 million on the projects within 3 years.
In addition, Dragon will retain a 3% Net Smelter Royalty on any deposit mined by Aurion within the projects and the defined Areas of Interest.
Aurion may purchase the full 3% NSR at any time on or before the 6th anniversary of the signing of the Agreement with a one off payment of EUR 4 million.
Alternately, Aurion can acquire 1% of the NSR any time after the 10th anniversary of the signing of the agreement via payment of EUR 4,000,000.
Aurion will also make bonus payments to Dragon Mining of EUR 2 million in cash or equivalent in Aurion shares for the defining of one million ounces of gold equivalent.
Further bonus payments of EUR 1 million in cash or shares will be payable for every additional one million ounces of gold defined.
Recent results from Kutuvuoma returned intercepts including 17.75 metres at 8.55 grams per tonne gold and 25.6 metres at 7.91g/t gold.
The company is capitalised at around $12 million.
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