Aurion Resources (TSXV: AU) has managed to attract the interest of KoBold Metals, the Bill Gates and Jeff Bezos backed explorer that utilizes artificial intelligence and other tech to identify deposits of critical minerals.
The company this morning indicated that it has entered into a definitive agreement with a Finnish subsidiary of KoBold to option out a portion of its Risti Property. KoBold has acquired the option to earn a 75% undivided interest in an eastern portion of the property, which is 35 square kilometres in size.
Under the terms of the option agreement, KoBold can earn that 75% interest by incurring US$12 million in exploration expenditures over the next five years, of which US$1.0 million must be spent in the next 18 months. Once the earn-in is complete, KoBold and Aurion will enter into a joint venture agreement. Should Aurion’s interest be diluted below 10%, their interest would convert to a 2% net smelter returns royalty.
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Notably, KoBold appears to be after just the critical minerals. Aurion has retained the full ownership rights to gold and silver across the property, and also retains the right to conduct exploration on the optioned claims in search of the precious metals.
“The agreement with a split commodity structure enables Aurion to retain full exploration and ownership rights over significant gold and silver discoveries while leveraging KoBold’s expertise in exploration for metals and minerals important for the green energy transition. The base metal prospectivity of the region is well evidenced by the Kevitsa Ni-Cu-PGE Mine (Boliden) and the Sakatti Ni-Cu-PGE discovery (Anglo American) located 12 km from the Risti property,” commented Aurion Resources CEO Matti Talikka.
Aurion Resources last traded at $0.72 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
