Aurion Resources Signs Definitive Option Agreement with B2Gold on Gold Projects in Northern Finland
January 21, 2016
ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Jan 20, 2016) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report that, subsequent to a binding letter agreement, (see Press Release dated Aug 13, 2015), it has signed a formal definitive option agreement with B2Gold Corp. ("B2Gold") granting B2Gold the right to earn up to an undivided 75% interest in an approximately 25,000 ha project area, including the Kutuvuoma and Ahvenjarvi gold exploration projects, in Northern Finland.
Under the terms of the agreement B2Gold must complete $5 million in exploration expenditures, pay Aurion $50,000 cash and issue 550,000 B2Gold shares over 4 years to earn a 51% interest. B2Gold can earn an additional 19% interest by spending a further $10 million over 2 years. B2Gold can earn an additional 5% interest for a total of 75% interest by completing a bankable feasibility study.
|All CDN$||Year 1 |
|Expenditures(or cash in lieu)||$750,000|
|Share Issuances||50,000 |
B2Gold Shares (Paid)
|Cash Option Payments||$50,000 (Paid)|
Schedule of expenditure commitments, option payments and share issuances to earn 51%
The first year commitment of $750,000 in exploration expenditures and payment of $50,000 cash and 50,000 B2Gold shares is guaranteed. B2Gold made the $50,000 cash payment and issued 50,000 shares on signing the binding letter agreement August 12th, 2015. Aurion will be the operator in year one. A finder's fee is payable with respect to the transaction.
"This is a great deal for Aurion and its shareholders", commented, Mike Basha. "Despite the negative market sentiment toward mining equities, we have been successful in attracting one of the highest quality partners in B2Gold. This partnership is a solid endorsement of Aurion's Finnish exploration initiative. The transaction will minimize future shareholder dilution while providing access to some of the brightest people in the business. We look forward to working closely with B2Gold to advance this exciting project".
Aurion recently completed a fall field program, focused primarily on its high grade Kutuvuoma and Ahvenjarvi gold projects. The program was fully-funded by B2Gold and comprised of mechanical trenching, mapping, prospecting, surface geochemical sampling and metallurgical testing. The results are being compiled and will be released shortly.
The company also announce that in accordance with its stock option plan, it has issued 2.7 million stock options to directors, officers and consultants at an exercise price of $0.10. The options vest immediately.
In other news, the company has decided to divest of its Logan Pass Project in Nevada.
Mike Basha, P.Eng., P.Geo., President and CEO of Aurion, a Qualified Person as defined by National Instrument 43-101, is responsible for the preparation of this release. For more information on these projects please visit our website at www.aurionresources.com.