Canadian miner Aurion Resources has entered into a definitive agreement with KoBold Exploration Finland, a subsidiary of KoBold Metals, for the exploration of critical minerals in Finland.
Under the deal, Aurion grants KoBold the right to earn a 75% interest in commodities, excluding gold or silver, found in the project area, which comprises 35km² of Aurion’s fully owned 160km² Risti property in Finland.
KoBold will spend $12m (€11.07m) on exploration by the fifth anniversary of the agreement’s signing as part of the deal.
The company is also required to commit a minimum exploration expenditure of $1m within the first 18 months.
Following the fulfilment of the earn-in requirements, a joint venture (JV) will be formed between KoBold and Aurion, with ownership stakes of 75% and 25%, respectively.
Additionally, if any party’s ownership in the JV falls below 10%, it will convert to a 2% net smelter returns royalty.
Aurion CEO Matti Talikka said: “Aurion is pleased to welcome KoBold Metals as a partner with an aim to unlock value from the base metal and critical mineral potential of the eastern part of the Risti property.
“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 [nickel-copper-Platinum Group Element] Mine (Boliden) and the Sakatti Ni-Cu-PGE discovery (Anglo American) located 12km from the Risti property.”
Aurion will retain the complete rights to areas within the project area where gold or silver are predominantly found and continue exploration for gold and silver during both the earn-in and JV phases, as long as it holds an ownership interest.
KoBold Metals chief strategy officer Daniel Enderton said: “We welcome the opportunity to work with Aurion to explore for critical metals on part of their Risti property. We look forward to combining these experiences and operating capabilities with KoBold’s team and technologies to search for a new discovery on this property. We are looking forward to getting the exploration teams on the ground in the coming months.”
In February 2024, KoBold Metals, supported by billionaires like Bill Gates and Jeff Bezos, signed a deal with Midnight Sun Mining to explore Zambia’s Dumbwa target at the Solwezi copper project.
