On March 21st 2017, Tertiary Minerals (TYM.L) announced the sale of its non-core gold assets in Finland, Kaaresselkä and Kiekerömaa to Aurion Resources (TSX VENTURE: AU). Tertiary Minerals notes the Aurion Resources announcement from September 7th 2017 outlined below.
On September 7th 2017, Aurion Resources Ltd announced that it had negotiated a non-brokered private placement of common shares with Kinross Gold Corporation at a price of $2.32 per Common Share. On closing, Kinross will own 9.98% of the then issued shares of Aurion. Based on the currently issued and outstanding share capital of Aurion, the private placement will result in the issuance of 6,853,500 shares, for gross proceeds to the Company of $15,900,120.
The net proceeds from the Private Placement will be used by the Company for exploration and development of its properties in Finland, and for working capital and general corporate purposes.
The Private Placement is expected to close on or about September 13, 2017, and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the acceptance by the TSX Venture Exchange.
All securities issued in connection with the Private Placement will be subject to a four-month hold period from the closing date.
Mike Basha the President and CEO of Aurion stated: “We are delighted to welcome Kinross as one of our major shareholders. This significant investment by Kinross validates Aurion’s exploration model in the Central Lapland Greenstone Belt, and provides the necessary capital to rapidly advance our comprehensive exploration plans of which the primary focus is the Aamurusko prospect. We also look forward to having access to Kinross’s technical expertise via the formation of a joint technical committee as Aurion’s programs move forward.”
Tertiary sold its non-core gold assets in Finland, Kaaresselkä and Kiekerömaa, earlier in this year to Aurion Resources. As part of the sale Tertiary owns 83,072 shares in Aurion and retain a royalty interest in the projects as follows:
- Pre-production royalty of US$1.00/ounce gold following the definition of a NI 43-101 (or equivalent) code compliant Inferred Mineral Resource Estimate on either project
- Pre-production royalty of US$2.00/ounce gold following the definition of a NI 43-101 (or equivalent) code compliant Indicated Mineral Resource Estimate on either project
- Pre-production royalty of US$3.00/ounce gold following the definition of a NI 43-101 (or equivalent) code compliant Measured Mineral Resource Estimate on either project
- Net smelter returns royalty (NSR) of 2% on all future gold production from either property
- Aurion can purchase 50% of the NSR from Tertiary for USD$1,000,000 at any time prior to commencement of commercial production on either project