Aurion Resources (TSX-V:AU) Ltd has announced an option agreement that will grant Kinross Gold Corporation the right to earn up to an undivided 70% interest in the Silaskaira property in Finland.
Under the terms of the deal, Kinross can earn a 70% undivided interest in the Silaskaira property by incurring a minimum of US$5 million in exploration expenditures on the property and by paying Aurion C$100,000 on, or before, the fifth anniversary of the agreement.
“The Silaskaira Property is located on the potential northern extension of the Hanhimaa Shear Zone, which hosts several gold occurrences currently being explored by Agnico-Eagle Mines and S2 Resources (ASX:S2R),” Aurion CEO Matti Talikka said in a statement.
READ: Aurion signs definitive option agreement with B2Gold on Kuortis property
“We welcome this opportunity to strengthen our relationship with Kinross,” Talikka added.
Aurion noted that Kinross has agreed to incur a minimum of US$1 million in exploration expenditures on, or before, 24 months from the date of the agreement and will act as the operator.
The company added that should its interest in the joint venture be diluted down to 10% or less, Aurion's interest will be converted to a 2% Net Smelter Return (NSR) royalty on the property.
As well, Aurion said it has amended its agreement with Dragon Mining (ASX:DRA) Ltd, whereby it has agreed to issue 130,000 Aurion common shares to Dragon to eliminate encumbrances on the Silaskaira property.
The Silaskaira property is located adjacent to the Silasselkä Vanadium project, currently under option to Strategic Resources Inc, and about 28 kilometres northwest of Agnico-Eagle's Kittilä Mine.
Aurion Resources (TSX-V:AU) is a Canadian exploration company that acquires early-stage precious metals exploration opportunities. It has a portfolio of properties in Finland, including its flagship Risti and Launi projects, as well as joint venture agreements with Kinross Gold, B2Gold Corp and strategic resources in Finland.
Contact Sean at sean@proactiveinvestors.com