- Minerals exploration company Avira Resources (AVW) is set to earn a majority stake in the Puolalaki project in Sweden through a deal with the project’s current owners
- Through a binding heads of agreement, AVW can earn an 80 per cent interest in the project by spending $2.4 million on exploration over three stages
- While the project is prospective for nickel-copper and cobalt, historic drilling also uncovered two high-grade gold zones
- AVW Executive Director David DeLoub says the project is located in a well-established minerals province with first-class infrastructure and technical support from locally-based partners
- Company shares are trading 33.3 per cent higher at 0.4 cents at 1:21 pm AEDT
Minerals exploration company Avira Resources (AVW) is set to earn a majority stake in the Puolalaki project in Sweden through a deal with the project’s current owners.
Under a binding heads of agreement, AVW will issue shares to the value of $60,000 to Scott Geological AB and Outlier Geoscience, which each own 50 per cent of the project, to kick off the earn-in process.
From here, Avira will need to spend no less than $250,000 on exploration work to earn an initial 20 per cent interest in the project.
For an extra 31 per cent stake, the company will be required to spend another $650,000 on exploration work.
Following this, AVW will need to spend a further $1.5 million to take on an additional 29 per cent.
On satisfying these conditions, Avira and the owners will form an incorporated joint venture whereby AVW will hold an 80 per cent interest in the project and the current owners retain 20 per cent.
Avira has the option to take its interest to 90 per cent by paying the owners $1.2 million cash.
The nickel-copper-cobalt project lies in northern Sweden, in a “well-established minerals province”, according to Avira
Historical drilling at the project has proven the occurrence of magmatic nickel-copper sulphides and also hit two high-grade gold mineralised zones, including 20.7 metres at 1.1 grams per tonne (g/t) gold from 36.5 metres and 4.4 metres at 8.9 g/t from 54.9 metres.
AVW Executive Director David DeLoub said the company was pleased to announce its participation in the Puolalaki project.
“This is a very prospective energy metals project that has the added benefit of hosting an unrelated gold bearing system which previously yielded several high-grade gold intercepts,” Mr DeLoub explained.
“We are particularly excited by the fact that the project is located in a well-established minerals province with first-class infrastructure and technical support from our locally based partners who have significant experience and history operating in this jurisdiction.”
The company has begun planning an application for ground-based exploration activities to be carried out over the northern hemisphere’s winter period.
AVW shares were trading 33.3 per cent higher at 0.4 cents at 1:21 pm AEDT.