ST. JOHN’S, Feb. 15, 2018 /CNW/ – Aurion Resources Ltd. (“Aurion” or the “Company”) (TSX VENTURE: “AU”) is pleased to report that it has signed a non-binding letter of intent (“LOI”) with Kinross Gold Corporation (“Kinross”) giving Kinross the right to earn up to 70% of the Outa project.
Under the terms of the LOI Kinross must spend US$5 million over 5 years to earn a 70% interest in the project. Kinross has agreed to complete a firm US$1 million exploration expenditure over the first two years. The transaction is subject to Kinross completing its due diligence investigations, the requisite corporate approvals of each party and the execution of a definitive agreement.. The definitive agreement is currently being negotiated and drafted.
The Outa project covers approximately 15,000 ha in the Central Lapland Greenstone Belt (“CLGB”) of Northern Finland. It is primarily underlain by meta-sedimentary rocks (polymictic conglomerates and quartzites) of the Kumpu Group in a setting similar to Aurion’s Risti project. Aurion acquired the project following the discovery of the Aamurusko gold prospect in late 2016. A map can be found at the following link, https://aurionresources.com/site/assets/files/1240/nr150218figures.pdf.
Mike Basha commented, “We are pleased to be furthering our relationship with Kinross by advancing the Outa project with them. This is a further endorsement of our exploration strategy in the CLGB. Optioning some of our approximately 200,000 ha portfolio allows us to focus our resources on Risti and Aamurusko, while having partners like Kinross advance other projects”.
Aurion also announces that the Board has approved the granting of 1,892,370 stock options to directors, officers, employees and consultants priced at $1.10 per share. In accordance with the Company’s stock option plan, the stock options will vest in two tranches over 12 months and are valid for 5 years.
Since the discovery of the Aamurusko prospect in late 2016, Aurion has consolidated a commanding land position in the CLGB, completed three financings (including a $16 million financing with Kinross) with no warrants and completed a maiden drill program at Aamurusko. Additionally Aurion has made multiple new high grade surface discoveries across the Risti project including the Notches and K2 (See Sept 14, 2017 press release) in the past year. A total of 2757 rock samples assaying an average of 10.1 g/t Au have been collected across the Risti project. Aurion has a strong balance sheet with approximately $20 million in cash, and is well positioned to continue exploring Aamurusko, refining and testing other drill targets at Risti and for advancing other projects in its portfolio. Aurion has an existing joint venture with B2Gold on its Kutuvuoma project which B2Gold is operating.
For more information on these projects please visit our website at www.aurionresources.com.
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.
Certain statements contained in this release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Companies’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The forward-looking information contained in this release is made as of the date hereof and Aurion is not obligated to update or revise any forward‑looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward‑looking information. The foregoing statements expressly qualify any forward‑looking information contained herein.
On behalf of the Board,
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Aurion Resources Ltd.
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