Business
Agnico Eagle Completes the First Anniversary $US 2 Million Payment to Orex as per the Agreement on the Barsele Project in Sweden
VANCOUVER, June 13, 2016 /CNW/ - Barsele Minerals Corp. – (TSX-V: BME) ("Barsele") reports that joint venture partner Agnico Eagle Mines Limited (NYSE: AEM, TSX
About this update from Goldsky Resources Corp.
[{"type":"text","content":"VANCOUVER, June 13, 2016 /CNW/ - Barsele Minerals Corp. – (TSX-V: BME) (\"Barsele\") reports that joint venture partner Agnico Eagle Mines Limited (NYSE: AEM, TSX: AEM) (\"Agnico Eagle\") has made the first anniversary $US 2 million ($CA 2.54 million) payment to Orex Minerals Inc. (TSX.V: REX) (\"Orex\") as per the agreement (the \"Agreement\") between Agnico Eagle and Orex whereby Agnico Eagle acquired a 55% interest in the Barsele Project in Västerbottens Län, northern Sweden. Pursuant to the Agreement, Agnico Eagle acquired a 55% interest in the corporate entity which owns the Barsele Project in consideration of an initial payment to Orex of $US 6 million, with an additional $US 2 million payable by Agnico Eagle, in cash or shares at Agnico Eagle's election, to Orex on each of the first and second anniversaries of the closing. As part of the Agreement, Agnico Eagle has committed to spend $US 7 million on Barsele Project expenditures over three years and will earn an additional 15% interest in the corporate entity which owns the Barsele Project if it completes a pre-feasibility study. Orex was also granted a 2% net smelter royalty on production from the Barsele Project which may be repurchased by Agnico Eagle at any time for $US 5 million. Agnico Eagle holds a majority of board seats and will be the operator of the Barsele Project for customary compensation (see Orex news release 11 June 2015). Subsequent to the original transaction with Agnico Eagle, Orex spun out their 45% interest in the Barsele Project to Barsele. The completion of the Barsele spin out was announced in a news release dated 25 September 2015. Orex and Barsele's President, Gary Cope says, \"This continuation of Agnico Eagle's involvement in the Barsele Project illustrates their interest in advancing and expanding the development of one of Scandinavia's best mineral projects.\" About the Barsele Gold Project The Barsele Project is located on the western end of the Proterozoic \"Skellefte Trend,\" a prolific volcanogenic massive sulphide deposits belt, where it intersects with the \"Gold Line\" in Northern Sweden. Both polymetallic deposits and intrusive hosted orogenic gold deposits are present in this region and on the property. Current and past producers in the region include Boliden, Kristineberg, Bjorkdal, Svartliden, and Storliden. On 25 September 2015, ...