First Nordic to Complete Acquisition of its 100%-Owned Greenstone Belt in Finland and Welcome Agnico Eagle as a Shareholder
Highlights:
- FNM enters into an agreement to finalize the acquisition of the Oijärvi
Gold Project inFinland , which includes the resource-stage Kylmäkangas gold deposit, a drill-ready, high-grade gold project with significant resource expansion and district-scale growth potential [2]. - Agnico Eagle to become a 13.3% shareholder of FNM.
- Already one of the largest mineral claimholders in
Sweden with a controlling position on the GoldLine Belt , FNM continues to build its business inSweden andFinland with an aim of being a premier European gold developer.
Agnico Eagle has agreed to exchange amounts that remain due under the asset purchase agreement between certain subsidiaries of FNM, certain subsidiaries of
Highlights of the Oijärvi
- Existing resource base with strong expansion and discovery potential: The Project contains the drill defined Kylmäkangas deposit, with an indicated mineral resource estimate of 159,000 oz AuEq (1.07 million tonnes grading 4.6 g/t AuEq) and an inferred mineral resource estimate of 152,000 oz AuEq (1.63 million tonnes grading 2.9 g/t AuEq) (see reference in "Additional Information" section below). The mineralized system remains open for expansion at depth and along strike of the 1.5 km mineralized trend of known mineralization. In addition to the Kylmäkangas deposit, historical reconnaissance drilling has identified additional zones of mineralization both along trend and as parallel zones of mineralization elsewhere on the Project. The Company believes that several of these peripheral targets merit follow-up.
- Significant technical database to support a renewed exploration focus: 75 holes have been drilled to date on the Kylmäkangas Project for a total of 19,580 m. Historical drill intercepts include 22.6 g/t of gold and 126.3 g/t of silver over 11.0 m (estimated true width) at 102 m depth. Across the rest of the belt, 32,274 m in 217 holes have been drilled.
Transaction Details:
Subject to the approval of the
In connection with the Transaction, Agnico Eagle and FNM will enter 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 to be issued to Agnico Eagle in connection with the Transaction will be subject to a four month hold period in accordance with applicable securities laws.
Advisors and Counsel
FNM has retained
About the Oijärvi Greenstone Belt
Located approximately 85 km east of Kemi,
The Company believes that the belt is a highly prospective addition to the portfolio, and that the relatively low amount of exploration within the Oijärvi greenstone belt to date could result in significant upside potential. The Company plans to develop a robust exploration program within the region and build upon the promising data available to date.
75 holes have been drilled to date on the Kylmäkangas Project for a total of 19,580 m. Several holes have intersected significant gold values over large thicknesses, including 22.6 g/t Au and 126.3 g/t Ag over 11.0m (estimated true width) at 101 m depth. Mineralization is developed in and around swarms of orogenic-style quartz veins associated with quartz-feldspar porphyry intrusions, and with disseminated sulfides in sediments, the latter style of mineralization only being recently recognized in the district.
The historical drill results suggest that the Kylmäkangas zone remains open at depth and along strike towards the southwest and northeast, and the Oijärvi Greenstone Belt extends for a further 20 km northeast of Kylmäkangas and a further five km to the southwest. Additional analysis of the historical data provides evidence of several other parallel gold mineralized trends within the project perimeters. Of particular note is the reconnaissance drilling 1.8 km to the southwest of the Kylmäkangas deposit which has intersected gold mineralization in the same stratigraphic position as Kylmäkangas, with little to no drilling in between or to follow up this intersection. This same stratigraphic horizon remains untested further to the southwest within the belt.
For more information on Oijarvi please visit FNM's website.
ABOUT FIRST NORDIC METALS
The Company's flagship asset is the Barsele gold project, located in
ON BEHALF OF THE BOARD OF DIRECTORS
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 FNM under its profile on SEDAR+ at www.sedarplus.ca.
[2] All technical information on the Project is based on the 2022 Technical Report by
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Neither the
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 statements relating to the terms and closing of the Transaction, receipt of TSXV approval of the Transaction and the exploration and results thereof of the Project and the Company's other properties in the Gold
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