The company is preparing for large-scale drilling by planning geophysical exploration programmes at the site. Credit: Masmikha/Shutterstock.

Australian Securities Exchange (ASX)-listed Avira Resources (AVW) has secured a 51% interest in the Puolalaki Ni-Cu-Co-Au project in Sweden, after completing the required Stage 2 earn-in norms.

Under the earn-in agreement, AVW was required to meet specific conditions to complete the Stage 2 earn-in.

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The company has confirmed that these requirements have been fulfilled, demonstrating its commitment to the project and its partners.

As part of the agreement, AVW issued exclusivity shares to the value of $60,000 to the project owners upon execution.

The staged earn-in agreement outlined that AVW initially spent $250,000 to earn a 20% interest.

For Stage 2, an additional $650,000 was spent to acquire a further 31% interest.

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Looking ahead, AVW is set to spend $1.5m to earn an additional 29% interest in the project during Stage 3.

Upon completion, an incorporated joint venture (JV) will be formed, with AVW holding an 80% interest and the project owners having a 20% stake.

Each party will contribute to JV expenses proportionally or face dilution.

Furthermore, AVW has the option to acquire an additional 10% JV interest from the owner with a $1.25m cash payment, subject to satisfying Stage 3 conditions.

If the owner’s interest falls below 10%, they may contribute pro-rata or convert their interest into a 1.5% net smelter return royalty (NSR), effectively concluding the JV.

With Stage 2 completed, AVW is reviewing the next phase, planning to work closely with partners to benefit all stakeholders.

The company is preparing for large-scale drilling by planning geophysical exploration programmes and reprocessing existing drill-hole electromagnetics data from recent exploration efforts.

AVW executive director David DeLoub said: “We are thrilled to have completed the Stage 2 earn-in requirement as per the terms.

“This achievement is a testament to our team’s dedication and the strong collaboration with our partners. We look forward to the next stages of the project and the opportunities they will bring.”