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 EUR 9 million over six years. The Hanhimaa project is located in northern Finland and covers a 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 EUR 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 EUR 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 EUR 1.5 million.