(RTTNews) - Aurion Resources Ltd. (AU.V) Wednesday has finalized an agreement with KoBold Exploration Finland Oy, a subsidiary of KoBold Metals Company, granting KoBold a 75% interest in a 35 km² section of Aurion's 160 km² Risti Property.
Aurion retains exploration and development rights for any discoveries in the area where gold or silver are the predominant minerals. Under the terms of the agreement, KoBold can acquire a 75% interest in non-gold and non-silver commodities within the Project Area by investing $12 million in exploration over five years, with a mandatory minimum expenditure of $1 million within the first 18 months.
Once KoBold fulfills these earn-in requirements, a joint venture will be established, granting KoBold a 75% stake while Aurion retains 25%. Additionally, if any ownership interest in the joint venture falls below 10%, it will be converted into a 2% net smelter returns royalty.
Throughout both the earn-in and joint venture phases, Aurion retains full ownership rights over areas where gold or silver are the predominant minerals and has the right to continue exploration activities in those regions.
Aurion's CEO, Matti Talikka, highlighted the strategic partnership with KoBold, emphasizing its potential to unlock base metal and critical mineral value while allowing Aurion to focus on gold and silver exploration. He noted the region's strong base metal potential, citing nearby mining operations such as the Kevitsa Ni-Cu-PGE Mine and the Sakatti Ni-Cu-PGE discovery.
KoBold Metals' Chief Strategy Officer, Daniel Enderton, expressed enthusiasm for collaborating with Aurion, acknowledging its strong operational capabilities. He emphasized KoBold's commitment to leveraging its technology and expertise to explore for critical metals in the Project Area, with exploration teams set to begin fieldwork in the coming months.
AU.V is currently trading at $0.74 or 2.7778% higher on the TSX Venture Exchange.
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