Highlights:
- FNM enters into an agreement to finalize the acquisition of the
Oijärvi Gold Project in Finland,
which includes the resource-stage Kylmäkangas gold deposit, a
drill-ready, high-grade gold project with significant resource
expansion and district-scale growth potential [2].
- Agnico Eagle to become a 13.3% shareholder of FNM.
- Already one of the largest mineral claimholders in Sweden with a controlling position on the Gold
Line Belt, FNM continues to build its business in Sweden and Finland with an aim of being a premier
European gold developer.
VANCOUVER, BC, July 15,
2024 /CNW/ - First Nordic Metals Corp.
("FNM" or the "Company") (TSXV: FNM) (OTCQB: FNMCF)
(FRA: HEG0) is pleased to announce that it has entered into a
transaction with Agnico Eagle Mines Limited ("Agnico Eagle")
(NYSE: AEM, TSX: AEM) that will result in Agnico Eagle holding,
after giving effect to the transaction, 13.3% of the issued and
outstanding common shares of FNM ("Shares"), subject to the
receipt of certain regulatory approvals and the satisfaction of
other conditions.
Agnico Eagle has agreed to exchange amounts that remain due
under the asset purchase agreement between certain subsidiaries of
FNM, certain subsidiaries of Agnico Eagle and EMX Royalty
Corporation ("EMX") dated March 19,
2021, as amended May 1, 2023
(the "Purchase Agreement") for 27,954,872 Shares (the
"Transaction"). The Transaction is being effected by way of
a subscription agreement between FNM and Agnico Eagle. The Purchase
Agreement provided for the acquisition of, among other things, the
Oijärvi Gold Project ("Oijärvi" or the
"Project"). FNM's Oijärvi is a 17,600-hectare greenstone
belt land package that includes the Kylmäkangas gold deposit, which
contains a high-grade underground resource that has seen limited
drilling.
Taj Singh, FNM's President
& Chief Executive Officer commented:
" Oijärvi has all the key attributes FNM
looks for in a high-quality project – high grades, significant
growth potential and a great location. Finalizing the acquisition
of Oijärvi is yet another step towards our
vision of becoming a leading gold development company. We are
thrilled to welcome Agnico Eagle and look forward to having
them as a significant shareholder."
Highlights of the Oijärvi Gold Project:
- Existing resource base with strong expansion and discovery
potential: The Project contains the drill defined Kylmäkangas
deposit, with an indicated mineral resource estimate of 159,000 oz
AuEq (1.07 million tonnes grading 4.6 g/t AuEq) and an inferred
mineral resource estimate of 152,000 oz AuEq (1.63 million tonnes
grading 2.9 g/t AuEq) (see reference in "Additional Information"
section below). The mineralized system remains open for expansion
at depth and along strike of the 1.5 km mineralized trend of known
mineralization. In addition to the Kylmäkangas deposit, historical
reconnaissance drilling has identified additional zones of
mineralization both along trend and as parallel zones of
mineralization elsewhere on the Project. The Company believes that
several of these peripheral targets merit follow-up.
- Significant technical database to support a renewed
exploration focus: 75 holes have been drilled to date on the
Kylmäkangas Project for a total of 19,580
m. Historical drill intercepts include 22.6 g/t of gold and
126.3 g/t of silver over 11.0 m
(estimated true width) at 102 m
depth. Across the rest of the belt, 32,274
m in 217 holes have been drilled.
Transaction Details:
Subject to the approval of the TSX Venture Exchange
("TSXV") and the satisfaction of certain other closing
conditions, FNM will issue 27,954,872 Shares to Agnico Eagle at a
subscription price of C$0.2925 per
Share for gross proceeds of $8,176,800, which proceeds are required to be
used by FNM to immediately satisfy the remaining consideration
payable to certain subsidiaries of Agnico Eagle under the Purchase
Agreement. The Transaction is expected to be treated as a
shares-for-debt transaction under the policies of the TSXV.
In connection with the Transaction, Agnico Eagle and FNM will
enter into an investor rights agreement that provides Agnico Eagle
with, among other things, certain rights in the event it maintains
minimum ownership thresholds in the Company, including: (i) the
right to participate in equity financings; (ii) a top-up right that
would permit Agnico Eagle to increase its holdings in FNM to 19.9%;
and (iii) the right (which Agnico Eagle has no present intention of
exercising) to nominate one person to FNM's board of directors.
The Shares to be issued to Agnico Eagle in connection with the
Transaction will be subject to a four month hold period in
accordance with applicable securities laws.
Advisors and Counsel
FNM has retained Stikeman Elliott LLP to act as its legal
advisor in connection with the Transaction.
About the Oijärvi Greenstone Belt
Located approximately 85 km east of Kemi, Finland, the Oijärvi Greenstone Belt is of
late Archean-age, similar to those found elsewhere in Finland and in the Canadian Shield. It is
approximately 35 km in length and is a relatively underexplored
region, with only 217 holes, with an average depth of ~150 m, in
closely situated clusters or fences, having been drilled outside of
the drill defined Kylmäkangas deposit itself. Most of the
historical drilling outside of the Kylmäkangas zone was completed
by the Geological Survey of Finland (GTK) and represents a low drill
density in an otherwise prospective 'belt-scale' property.
The Company believes that the belt is a highly prospective
addition to the portfolio, and that the relatively low amount of
exploration within the Oijärvi greenstone belt to date could result
in significant upside potential. The Company plans to develop a
robust exploration program within the region and build upon the
promising data available to date.
75 holes have been drilled to date on the Kylmäkangas Project
for a total of 19,580 m. Several
holes have intersected significant gold values over large
thicknesses, including 22.6 g/t Au and 126.3 g/t Ag over
11.0m (estimated true width) at
101 m depth. Mineralization is
developed in and around swarms of orogenic-style quartz veins
associated with quartz-feldspar porphyry intrusions, and with
disseminated sulfides in sediments, the latter style of
mineralization only being recently recognized in the district.
The historical drill results suggest that the Kylmäkangas zone
remains open at depth and along strike towards the southwest and
northeast, and the Oijärvi Greenstone Belt extends for a further 20
km northeast of Kylmäkangas and a further five km to the southwest.
Additional analysis of the historical data provides evidence of
several other parallel gold mineralized trends within the project
perimeters. Of particular note is the reconnaissance drilling 1.8
km to the southwest of the Kylmäkangas deposit which has
intersected gold mineralization in the same stratigraphic position
as Kylmäkangas, with little to no drilling in between or to follow
up this intersection. This same stratigraphic horizon remains
untested further to the southwest within the belt.
For more information on Oijarvi please visit FNM's website.
ABOUT FIRST NORDIC METALS
The Company's flagship asset is the Barsele gold project,
located in Sweden and in a joint
venture with senior gold producer Agnico Eagle Mines Limited.
Ownership in the Barsele gold project is currently 55% Agnico Eagle
and 45% FNM (Agnico Eagle has the right to earn an additional 15%
by completing a pre-feasibility study). Immediately surrounding the
Barsele project, FNM is the 100%-owner of a district-scale license
position of close to 100,000 hectares on both the prolific Gold
Line and Skelleftea VMS belts. Additionally, in northern Finland
FNM holds the entire underexplored Oijärvi Greenstone Belt.
ON BEHALF OF THE BOARD OF DIRECTORS
Taj Singh, M.Eng, P.Eng, CPA
President & CEO, Director
Additional Information & Qualified Person:
[1] Details of the acquisition of the Project are set out in the
Purchase Agreement, which has been filed by FNM under its profile
on SEDAR+ at www.sedarplus.ca.
[2] All technical information on the Project is based on the
2022 Technical Report by ARFY Finland Oy entitled "Mineral Resource
estimate NI 43-101 Technical Report - Kylmäkangas Gold Project,
AFRY Finland Oy, July 25,
2022" effective date of July 25,
2022, filed on SEDAR+ by Gold Line Resources Ltd. (acquired
by FNM).
Benjamin Gelber, Chief Technical
Director of FNM, a qualified person as defined in National
Instrument 43-101, has reviewed and approved the technical
disclosure contained in this news release.
Follow First Nordic Metals:
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| LinkedIn: @firstnordicmetals
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Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Statements:
This release contains "forward–looking
information" or "forward-looking statements" within the meaning of
Canadian securities laws, which may include, but are not limited to
statements relating to the terms and closing of the Transaction,
receipt of TSXV approval of the Transaction and the exploration and
results thereof of the Project and the Company's other properties
in the Gold Line Belt. All statements in this release, other than
statements of historical facts, that address events or developments
that the Company expects to occur, are forward-looking statements.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Company believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ from those in the
forward-looking statements. Such forward-looking information
reflects the Company's views with respect to future events and is
subject to risks, uncertainties and assumptions. Such factors
include, among other things: risks and uncertainties relating to
exploration and development, the ability of the Company to obtain
additional financing, the need to comply with environmental and
governmental regulations, fluctuations in the prices of gold and
other commodities, operating hazards and risks inherent in the
resource industry, competition and other risks and uncertainties,
including those described in the Company's financial statements
and/or management discussion and analysis available on
www.sedarplus.ca. The Company does not undertake to
update forward–looking statements or forward-looking
information, except as required by law.
SOURCE First Nordic Metals Corp.