Centerra Gold has terminated its strategic alliance with Erris Resources PLC (LON:ERIS) after almost four years. The partners had been in a joint venture on exploration ground in Sweden owned by Erris.
"Erris Resources is grateful for the consulting and exploration partnership with Centerra Gold over the past four years, which from our experience is a typical duration for such joint ventures,” said Erris chief executive Anton du Plessis.
“While we are disappointed that it has ended, we will continue to pursue this type of partnership with other mining partners having demonstrated our consulting expertise in delivering cost-effective exploration. Erris Resources retains a portfolio of 100%-owned prospective gold projects in Sweden, Finland and Norway, which it will seek to advance with new partners. These projects include Brännberg in Sweden and Gautelis in Norway with historic drilled gold mineralisation in carbonates."
The total expenditure on the projects during the period of the joint venture was approximately US$3.4mln, on which Erris Resources earned consultancy fees of 10% for managing this exploration work.
The work resulted in the discovery of several new mineralised zones in outcrop and some significant intersections in drilling. However, drilling did not outline exploration targets meeting the minimum criteria for Centerra Gold to continue funding.
Erris Resources retains 100% of several exploration permits in Sweden and Norway and two reservation permits in Finland. The assets include the Brännberg project located in the Skellefte Mining District of North Sweden, which has some significant gold intersections.
At the end of November, the company held approximately €1.6mln in cash.