VANCOUVER, BC, Aug. 1, 2024
/CNW/ - First Nordic Metals Corp. ("FNM" or the
"Company") is pleased to announce that
yesterday it completed its acquisition of the Oijärvi
Gold Project ("Oijärvi" or the
"Project") that was announced on July
15, 2024 (the "Transaction"). Oijärvi is a 17,600
hectare greenstone belt land package that includes the Kylmäkangas
gold deposit, which contains a high-grade underground resource that
has seen limited drilling.
The Transaction was effected by way of a subscription agreement
between FNM and Agnico Eagle Mines Limited ("Agnico Eagle"),
pursuant to which Agnico Eagle exchanged amounts due under the
asset purchase agreement between certain subsidiaries of FNM,
certain subsidiaries of Agnico Eagle and EMX Royalty Corporation
dated March 19, 2021, as amended
May 1, 2023 (the "Purchase
Agreement") for 27,954,872 common shares of the Company (the
"Shares").[1]
FNM issued the 27,954,872 Shares to Agnico Eagle at a
subscription price of C$0.2925 per
Share for gross proceeds of $8,176,800, which proceeds were used by FNM to
immediately satisfy the remaining consideration payable to certain
subsidiaries of Agnico Eagle under the Purchase Agreement. The
Transaction was treated as a shares-for-debt transaction under the
policies of the TSX Venture Exchange (the "TSXV") and
remains subject to final acceptance of the TSXV.
In connection with the Transaction, Agnico Eagle and FNM entered
into an investor rights agreement that provides Agnico Eagle with,
among other things, certain rights in the event it maintains
minimum ownership thresholds in the Company, including: (i) the
right to participate in equity financings; (ii) a top-up right that
would permit Agnico Eagle to increase its holdings in FNM to 19.9%;
and (iii) the right (which Agnico Eagle has no present intention of
exercising) to nominate one person to FNM's board of directors.
The Shares issued to Agnico Eagle in connection with the
Transaction are subject to a four month hold period from
yesterday's date in accordance with applicable
securities laws.
ABOUT FIRST NORDIC METALS
The Company's flagship asset is the Barsele gold project,
located in Sweden and in a joint
venture with senior gold producer Agnico Eagle Mines Limited.
Ownership in the Barsele gold project is currently 55% Agnico
Eagle and 45% FNM (Agnico Eagle has the right to earn an additional
15% by completing a pre-feasibility study). Immediately surrounding
the Barsele project, FNM is the 100%-owner of a district-scale
license position of close to 100,000 hectares on both the prolific
Gold Line and Skelleftea VMS belts. Additionally, in northern
Finland FNM holds the entire underexplored Oijärvi Greenstone
Belt.[2]
ON BEHALF OF THE BOARD OF DIRECTORS
Taj Singh, M.Eng, P.Eng, CPA
President & CEO, Director
Additional Information & Qualified Person:
[1]
Details of the acquisition of the Project are set out in the
Purchase Agreement, which has been filed by Gold Line Resources
Ltd. (acquired by FNM) under its profile on SEDAR+.
[2] All technical information on the Project is based on the
2022 Technical Report by ARFY Finland Oy entitled "Mineral Resource
estimate NI 43-101 Technical Report - Kylmäkangas Gold Project,
AFRY Finland Oy, July 25, 2022"
effective date of July 25, 2022,
filed on SEDAR+ by Gold Line Resources Ltd. (acquired by FNM).
Benjamin Gelber, Chief Technical
Director of FNM, a qualified person as defined in National
Instrument 43-101, has reviewed and approved the technical
disclosure contained in this news release.
Follow First Nordic Metals:
Twitter:
@fnmetals | Youtube: @firstnordicmetalscorp
| LinkedIn: @firstnordicmetals
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@firstnordicmetals
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Statements:
This release contains "forward‐looking
information" or "forward-looking statements" within the meaning of
Canadian securities laws, which may include, but are not limited to
the exploration and results thereof of the Project and the
Company's other properties in the Gold Line Belt. All statements in
this release, other than statements of historical facts, that
address events or developments that the Company expects to occur,
are forward-looking statements. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and
similar expressions, or that events or conditions "will", "would",
"may", "could" or "should" occur. Although the Company believes the
expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of
future performance and actual results may differ from those in the
forward-looking statements. Such forward-looking information
reflects the Company's views with respect to future events and is
subject to risks, uncertainties and assumptions. Such factors
include, among other things: risks and uncertainties relating to
exploration and development, the ability of the Company to obtain
additional financing, the need to comply with environmental and
governmental regulations, fluctuations in the prices of gold and
other commodities, operating hazards and risks inherent in the
resource industry, competition and other risks and uncertainties,
including those described in the Company's financial statements
and/or management discussion and analysis available on
www.sedarplus.ca. The Company does not undertake to update
forward‐looking statements or forward-looking
information, except as required by law.
SOURCE First Nordic Metals Corp.