Centerra Gold elects to earn into Erris's Brannberg project
Source - SMW
Centerra Gold has nominated Erris Resources' Brannberg gold project in northern Sweden as an elected designated project area under the existing joint venture agreement between the companies.
Erris entered into the Centerra JV agreement with Centerra Gold KB Inc, a wholly-owned subsidiary of Centerra Gold in January 2016.
Under the terms of the agreement, Centerra Gold has the option to elect to earn a 51% interest in a DPA by funding further exploration and development expenditures in the aggregate amount of US$1 million over a period of two years from the date of election, including US$400,000 on, or before the first anniversary of the election, and US$600,000 on, or before the second anniversary.
Erris chief executive Merlin Marr-Johnson said: 'We are delighted that Centerra Gold has elected to earn-in to the Brannberg DPA under the terms of our strategic alliance with this US$1 million investment.
'It endorses our ability to generate high quality projects that are attractive to major mining companies, and is in-line with the company's strategy to create shareholder value through early generative exploration and discovery.
'The new deal allows us to accelerate the work programme at this high priority gold project.
'Historic drilling at Brannberg returned several intersections of broad gold mineralisation from surface, and we look forward to testing the open targets along strike and at depth to determine the size of the mineralised system.
'With Centerra Gold now funding our generative gold exploration and three key projects in Sweden, Erris will see US$1,850,000 of exploration funding in 2018 on this portfolio and we have exposure to significant upside with no corporate dilution.
'Having been admitted to trading on AIM at the end of 2017 with a £4.0m fundraise supported by our 18.9% shareholder, Osisko Gold Royalties, we are looking forward to advancing our existing portfolio, whilst also identifying additional opportunities that have the potential to create shareholder value.'
At 8:01am: (LON:ERIS) Erris Resources Plc Ord Gbp0.01 share price was +0.7p at 25.5p