Dragon Mining signed a Letter of Intent with Agnico-Eagle Mines Ltd. (AEM), whereby AEM can earn up to a 70% interest in the Hanhimaa gold project with the staged expenditure of €9 million over six years. The Hanhimaa project is located in northern Finland and covers portion of the highly prospective Central Lapland Greenstone Belt. The 360.2 km2 near contiguous holding encompasses the north-south trending Hanhimaa Shear Zone, 10 km west of AEM’s Kittila gold mine.
Under the agreed terms, AEM will expend €5 million within three years of the commencement date to earn a 51% interest in the Hanhimaa gold project. Upon earning the 51% interest, AEM can then elect to earn an additional 19% by expending a further €4 million within three years of completion of the initial earn-in phase. Agnico-Eagle will be the manager during the earn-in and can withdraw at any time following expenditure of €1.5 million.