Tertiary Minerals offloads non-core gold assets in Finland

Tertiary Minerals announced the sale of its non-core gold assets, Kaaresselkä and Kiekerömaa in Finland on Monday, to TSX-V listed Aurion Resources.

The AIM-traded company said Aurion is a Canadian listed precious metals exploration company primarily focusing on the development of its Finnish gold projects, several of which are under a joint venture with B2Gold, a main listed gold producer and developer.

It confirmed £100,000 initial consideration is to be paid by Aurion, with £15,000 in cash and £85,000 in Aurion shares.

Tertiary said it will retain royalty interest in the projects, with a pre-production royalty of $1 per ounce of gold following the definition of a NI 43-101 or equivalent code compliant inferred mineral resource estimate on either project.

Another pre-production Royalty of $2 per ounce of gold would be paid following the definition of a NI 43-101 or equivalent code compliant indicated mineral resource estimate on either project, and a pre-production royalty of $3 per ounce of gold following the definition of a NI 43-101 or equivalent code compliant measured mineral resource estimate on either project.

On top of that, a net smelter returns royalty of 2% on all future gold production from either property would also be paid.

Aurion also has the rights to purchase 50% of the NSR from Tertiary for $1m at any time prior to commencement of commercial production on either project.

Tertiary said the sale is conditional upon the successful transfer of the exploration licences for each project from Tertiary to Aurion - to be handled by the mining division of the Finnish Safety and Chemical Agency - and exchange approval by the TSX-V.

“We are delighted to have sold our two legacy gold projects to an accomplished gold explorer,” said Tertiary managing director Richard Clemmey.

“We wish Aurion every success with the development of the projects and look forward to potentially sharing the future upside through our retained royalty interest.”