ST. JOHN'S, NEWFOUNDLAND AND LABRADOR--(Marketwired - Jan 20, 2016) - Aurion Resources Ltd. ("Aurion") (TSX VENTURE:AU) is pleased to report that, subsequent to a binding letter agreement, (see Press Release dated Aug 13, 2015), it has signed a formal definitive option agreement with B2Gold Corp. ("B2Gold") granting B2Gold the right to earn up to an undivided 75% interest in an approximately 25,000 ha project area, including the Kutuvuoma and Ahvenjarvi gold exploration projects, in Northern Finland.
Under the terms of the agreement B2Gold must complete $5 million in exploration expenditures, pay Aurion $50,000 cash and issue 550,000 B2Gold shares over 4 years to earn a 51% interest. B2Gold can earn an additional 19% interest by spending a further $10 million over 2 years. B2Gold can earn an additional 5% interest for a total of 75% interest by completing a bankable feasibility study.
| All CDN$ |
Year 1
(Aug'15-Aug'16) |
Year 2
(Aug'16-Aug'17) |
Year 3
(Aug'17-Aug'18) |
Year 4
(Aug'18-Aug'19) |
| Expenditures(or cash in lieu) |
$750,000
(Firm) |
$1,000,000 |
$1,250,000 |
$2,000,000 |
| Share Issuances |
50,000
B2Gold Shares (Paid) |
100,000
B2Gold shares |
200,000
B2Gold shares |
200,000
B2Gold shares |
| Cash Option Payments |
$50,000 (Paid) |
|
|
|
Schedule of expenditure commitments, option payments and share issuances to earn 51%
The first year commitment of $750,000 in exploration expenditures and payment of $50,000 cash and 50,000 B2Gold shares is guaranteed. B2Gold made the $50,000 cash payment and issued 50,000 shares on signing the binding letter agreement August 12th, 2015. Aurion will be the operator in year one. A finder's fee is payable with respect to the transaction.
"This is a great deal for Aurion and its shareholders", commented, Mike Basha. "Despite the negative market sentiment toward mining equities, we have been successful in attracting one of the highest quality partners in B2Gold. This partnership is a solid endorsement of Aurion's Finnish exploration initiative. The transaction will minimize future shareholder dilution while providing access to some of the brightest people in the business. We look forward to working closely with B2Gold to advance this exciting project".
Aurion recently completed a fall field program, focused primarily on its high grade Kutuvuoma and Ahvenjarvi gold projects. The program was fully-funded by B2Gold and comprised of mechanical trenching, mapping, prospecting, surface geochemical sampling and metallurgical testing. The results are being compiled and will be released shortly.
The company also announce that in accordance with its stock option plan, it has issued 2.7 million stock options to directors, officers and consultants at an exercise price of $0.10. The options vest immediately.
In other news, the company has decided to divest of its Logan Pass Project in Nevada.
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,
Mike Basha, 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.