Kolar Gold Ltd has entered into a MoU to establish a Joint Venture to develop gold exploration and mining assets in Finland.
- Gold assets in second jurisdiction secured, to be developed concurrent to Kolar's existing interests.
- Option for Kolar to earn-in up to 50% of existing gold projects in Finland through JV.
- High grade targets within licences covering an area of approximately 24km2.
- Potentially cashflow generative within 12 months via bulk sampling.
- Upfront payment of €150,000 in cash and €150,000 equivalent in Kolar shares based on 14-day VWAP of 1.6p, seeing Kolar commence with a 15.4% JV interest.
- Commitment by Kolar to provide an additional €350,000 in Q1 2017 increasing Kolar's interest to 28.3%.
- Option for Kolar to provide up to a further €1m to be expended over 2017, to earn up to 50% of JV.
- Subject to at least 100kg (3,215 oz.) of gold being produced in 2017 from initial target, 17m warrants exercisable at 3.2p each expiring in October 2018, to be issued to JV partner.
- Traditional mining jurisdiction - politically and financially stable and secure environment.