TSX-V: AU
ST. JOHN'S, April 24, 2019 /CNW/ - Aurion
Resources Ltd. (TSXV: AU) ("Aurion" or the "Company")
reports it has signed an earn-in option and JV agreement with
Strategic Resources Inc. (TSXV: STI) ("Strategic") in
respect of the Company's wholly owned non-core Silasselkä Vanadium
Project located in northern Finland.
Aurion will grant Strategic the irrevocable and exclusive option
to acquire up to a 100% interest in the Silasselkä Project by
paying C$500,000 cash, issuing
8,000,000 Strategic shares and incurring C$3,000,000 in exploration expenditures, through
a two stage earn-in agreement over 3 years.
First Earn-In Terms for 75% Project Stake:
- Issue 3,000,000 shares and pay C$500,000 upon closing;
- Issue an additional 1,916,667 shares, and have spent
C$1,000,000 of exploration
expenditures before 12 months following the closing date; and
- Issue an additional 1,916,667 shares and have spent an
additional C$1,000,000 of exploration
expenditures before 24 months following the closing date.
Second Earn-In Terms for 25% Project Stake:
- Issue 1,166,666 shares and have spent an additional
C$1,000,000 of exploration
expenditures before 36 months following the Closing Date.
In the event Strategic exercises the Second Earn-in, and within
five years thereafter it is determined that Silasselkä contains at
least 300,000 ounces of gold in the Indicated mineral resource
category or better, then Strategic will issue an additional 3.0
million shares to Aurion.
Aurion will beneficially own approximately 9.6% of the issued
and outstanding shares of Strategic upon closing and will have the
right to maintain their pro rata equity ownership in the Company
through participating in any subsequent financings undertaken by
the Company. Aurion will have the right to appoint one board
nominee so long as it holds more than 5% of the outstanding shares
of Strategic. Aurion CFO Mark
Serdan will be its board nominee.
The grant and exercise of the option is subject to Strategic
meeting certain conditions including receipt of Exchange acceptance
of the agreement and completing a concurrent financing.
The Silasselkä Project is located in northern Finland, approximately 200 km north of
Rovaniemi and 850 km north of Helsinki. Access to the property is provided
by paved highways and a network of gravel forestry roads.
Historical drilling defined four vanadium-rich magnetite zones
located along a 16 km long magnetic anomaly. Approximately 7,400
metres of drilling over 72 holes has been completed on the
property. Strategic plans to twin select prior drilling and
complete new drilling, which is expected to lead to a maiden
National Instrument 43-101 ("NI 43-101") resource estimate.
A third party holds a 3.0% net smelter returns royalty (the
"Royalty") on Aurion's Finnish properties, including Silasselkä.
Aurion has the right to buy the entire Royalty for €4,000,000 at
any time before May 2020. In the
event Aurion acquires any or all of the Royalty, Strategic will
have the option to purchase from Aurion up to one-half of such
purchased Royalty, as it pertains to the Silasselkä property, on a
proportionate value basis.
About Strategic Resources
Strategic Resources Inc. is a Vancouver, Canada based mineral exploration
and development company that will be focused on vanadium
projects.
Further details are available on the Company's website
at https://strategic-res.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. For more information on these projects please
visit our website at www.aurionresources.com.
Forward-Looking Statement
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 of Directors,
Michael Basha, Chief Executive
Officer
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.