Make Kitco Your Homepage

Agnico Eagle to sell two gold projects in Finland and Sweden

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Gold Line Resources (TSX-V: GLDL) and EMX Royalty (NYSE American and TSX-V: EMX) announced today that they have entered into a definitive agreement with Agnico Eagle Mines (NYSE and TSX: AEM) pursuant to which Gold Line will acquire a 100% interest in Agnico’s Oijärvi gold project located in central Finland and the Solvik gold project located in southern Sweden for an aggregate purchase price of US$10 million.

According to the statement, Agnico will retain a 2% NSR royalty on the projects, 1% of which may be purchased at any time by EMX for US$1,000,000.

The Oijärvi gold project contains the drill defined Kylmäkangas deposit, with a historical inferred mineral resource of 1.89 million tonnes grading 4.11 g/t Au for 250,000 oz Au and 31.11 g/t Ag for 1,896,000 oz Ag. The mineralized system remains open for expansion at depth and along strike of the 1.5 kilometer mineralized trend of known mineralization.

The Solvik gold project is a 9,240 hectare advanced exploration project located approximately 16 km south from past producing Harnäs gold mine in south western Sweden. A total of 43 holes have been drilled to date across the project for a total of 8,364 m. Several holes have intersected gold mineralization with the best intercepts being 2.50 g/t Au over 19.4 m and 2.71 g/t Au over 8.5 m (estimated true widths).

Gold Line currently holds a prospective portfolio of five gold exploration projects in Sweden: one project is in the Skelleftea belt of north-central Sweden and four projects, including the Långtjärn property, are located within the Gold Line Mineral Belt of north-central Sweden. The projects are located on a 200-kilometre Proterozoic greenstone sedimentary belt that is host to multiple gold showings and deposits.

EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.