Dragon Mining finalizes deal to sell gold deposits in Finland
Nordic gold producer Dragon Mining has finalized a deal with Aurion Resources to sell its Kutuvuoma and Silasselkä gold projects in Finland.
As per the terms, Aurion Resources will issue 6,000,000 common shares to Dragon Mining and will invest €1m in the projects over three years.
Dragon Mining will retain net smelter royalty of 3% on any of the deposits mined by Aurion or any associated third party within the projects.
Additionally, the company will receive €2m in cash or in shares for the defining of one million ounces of gold equivalent as well as €1m cash or shares for every additional one million ounces of gold defined.
The companies have entered into a binding Letter of Intent (LoI) in March 2014.
The Kutuvuoma project area is said to be a high-grade, shear zone hosted gold deposit and to date 29 reverse circulation (RC) drilling and 18 diamond drill holes have been completed.
Dragon gained control of the property from Outokumpu in 2003, as part of a large property and data package.
Dragon Mining staked the Silasselkä project in 2010 where a total of 55 diamond core drill holes were completed.