Aurion options its Silaskaira gold property in Finland to Kinross

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Aurion Resources (TSX VENTURE: AU) announced Monday that it has signed a formal definitive option agreement with Kinross Gold (TSX: K) granting Kinross the right to earn up to an undivided 70% interest in the Silaskaira property, which is located approximately 28 km northwest of Agnico-Eagle's Kittil?? mine in Finland.

Under the terms of the agreement, Kinross can earn a 70% undivided interest in the Silaskaira property by incurring a minimum of USD$5,000,000 in exploration expenditures on the property and paying Aurion CAD$100,000 on, or before, the fifth anniversary of the agreement.

Kinross has agreed to incur a minimum of USD$1,000,000 in exploration expenditures on, or before, 24 months from the date of the agreement and will act as the operator, the company said in a statement.

Should Aurion's interest in the joint venture be diluted down to 10% or less, Aurion's interest will be converted to a 2% Net Smelter Return (NSR) Royalty on the property, the company added.

"We are excited to work with Kinross' first class exploration team on the Silaskaira property," commented Matti Talikka, Aurion's CEO. "The Silaskaira property is located on the potential northern extension of the Hanhimaa Shear Zone, which hosts several gold occurrences currently being explored by Agnico-Eagle Mines and S2 Resources. We welcome this opportunity to strengthen our relationship with Kinross."

Aurion said it also amended its agreement with Dragon Mining, subject to TSX acceptance, whereby it has agreed to issue 130,000 common shares of Aurion to Dragon Mining to eliminate encumbrances on the Silaskaira property.

Aurion's strategy is to generate or acquire early-stage precious metals exploration opportunities and advance them through direct exploration by its team or by business partnerships and joint venture arrangements. Aurion's current focus is exploring on its Flagship Risti and Launi projects, as well as advancing its joint venture properties with B2Gold Corp. and Kinross Gold Corp. in Finland.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Monetary-driven precious metals outperform major base metals

Gold stocks hit by plunging equities markets

Gold stocks down as metal and equities momentum fades

Another Kazatomprom guidance announcement shakes uranium price

Major monetary drivers still supporting gold