Shares in Sienna Resources Inc (CVE:SIE) raced higher on Monday as it revealed it would acquire a new cobalt-nickel-copper prospect in Sweden.
Slattberg is a historic mining camp hosting cobalt-nickel-copper-rich massive sulphide mineralization that occurs within a 2km belt of historic nickel-copper mines and Sienna has struck an exploration and option agreement with EMX Royalty Corp for the site.
At the forefront of a boom..
Sweden is at the forefront of a boom in the mining industry and boasts a low corporate income tax rate, a proactive geological survey, and broad public support for export-led mining, the firm highlighted.
"We are very pleased to have the opportunity to have access to this project," said Jason Gigliotti, the president of Sienna.
"We are positioning Sienna at the forefront of the battery metals revolution. This new project lies within one of the top mining jurisdictions in the world with significant mining history.
"The infrastructure is as good as any drill target I have seen. There are paved roads within metres of planned drill targets and this prospect is accessible year-round.
"This new cobalt-nickel-copper prospect houses 12 past mines and we are optimistic about what new mining techniques could achieve.
Drilling in 2018..?
"We expect to be drilling this property early in 2018.
"When you couple this new project with our Clayton Valley Deep basin lithium brine project in Nevada, it is clear that Sienna is focused on the battery metals space.
"Management is looking forward to a very active 2018 season and we are very optimistic about the future growth of the company."
Gigliotti noted that Northvolt was planning to be the largest battery factory in Europe at around the same size as Tesla's (NASDAQ:TSLA) gigafactory and wanted to source locally as much as possible.
"There are now more than 20 megabattery factories currently being planned or constructed globally, creating a massive demand on the battery metals such as lithium, cobalt and nickel," he added.
On signing the agreement, Sienna will issue EMX with 3mln shares.
To exercise of the option, Sienna must spend at least C$500,000 on exploration, including drilling of at least 750 metres.
Upon exercising the option, Sienna will issue EMX a further 3mln shares, and EMX will receive a 3% net smelter return on the properties.
Within six years of executing the deal, Sienna may purchase 0.5% of the NSR royalty for C$1.5mln, leaving EMX with a 2.5% NSR royalty.
Shares surge...
Sienna Resources shares surged over 19% on the day in Toronto to stand at C$0.245 each.