Gold Line Resources Ltd. (TSX-V: GLDL) and EMX Royalty Corp. (NYSE American: EMX) (TSX-V: EMX) are pleased to announce that they have entered into a definitive agreement with Agnico Eagle Mines Limited (NYSE: AEM) (TSX: AEM) pursuant to which Gold Line will acquire a 100% interest in Agnico’s Oijärvi Gold Project located in central Finland and the Solvik Gold Project located in southern Sweden for an aggregate purchase price of US$10 million comprised of cash and shares of each of Gold Line and EMX. Agnico will retain a 2% net smelter return royalty on the Projects, 1% of which may be purchased at any time by EMX for US$1 million.
Adam Cegielski, President, CEO and Director of Gold Line comments, “These highly prospective gold projects have returned promising exploration results in the past and we see significant potential to expand the historical resource at Oijärvi and make new gold discoveries. We have already identified several areas to target for immediate exploration and look forward to working closely with our partners at EMX towards unlocking value from the Projects.”
David M. Cole, President, CEO and Director of EMX comments, “We are pleased to further our strategic relationship with Gold Line. These advanced projects enhance Gold Line’s value proposition and provide EMX with additional royalty exposure in two emerging gold belts.”
Transaction Highlights
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1 | See Agnico News Release dated February 13, 2013; also unpublished Agnico Eagle – Kylmäkangas Au-Ag Mineralization Prospectus Report, effective date July 15, 2019. A qualified person has not done sufficient work to classify the historical resource estimate discussed above as a current mineral resource and Gold Line is not treating the historical estimate as a current mineral resource. Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimate can be classified as a current mineral resource. The historical resource estimate is presented only for the purpose of describing the extent of gold mineralization and to outline the exploration potential. This historical resource estimate should not be relied upon. |
2 | The historical drilling was reported by Agnico. Gold Line has not done sufficient work to verify these drill results but believes the drill results to be reliable and relevant. |
Oijärvi Gold Project
The Oijärvi Gold Project is a 1,641 hectare advanced exploration project located approximately 350 km south of Agnico’s Kittila Mine and 85 km east of the city of Kemi, Finland. The property covers a late Archean-age greenstone belt known as the Oijärvi Greenstone Belt, similar to those found elsewhere in Finland and in the Canadian Shield, that hosts several gold-bearing zones within the project area.
A total of 292 holes have been drilled to date across the project for a total of 51,854 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). 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 project contains the drill defined Kylmäkangas deposit, which comprises a historical inferred mineral resource of 1.89 Mt grading 4.11 g/t Au for 250,000 oz Au and 31.11 g/t Ag for 1,896,000 oz Ag. The mineralized system remains open at depth and along strike towards southwest and northeast. A qualified person has not done sufficient work to classify the historical resource estimate discussed above as a current mineral resource and Gold Line is not treating the historical estimate as a current mineral resource. Significant data compilation, re-drilling, re-sampling and data verification may be required by a qualified person before the historical estimate can be classified as a current mineral resource. The historical resource estimate is presented only for the purpose of describing the extent of gold mineralization and to outline the exploration potential. This historical resource estimate should not be relied upon.
Reconnaissance drilling 1.8 km to the southwest of the Kylmäkangas deposit intersected gold mineralization in the same stratigraphic position as Kylmäkangas, with little to no drilling in between. The sediment-hosted gold mineralization described above was intercepted in drill hole SAR09001 to the south of the main Kylmäkangas zone. These targets are expected to be prioritized by Gold Line for follow-up drilling.
Solvik Gold Project
The Solvik Gold Project is a 9,240 hectare advanced exploration project located approximately 16 km south from past producing Harnäs gold mine in south western Sweden. Gold mineralization at Solvik occurs in quartz veins and breccias developed along deformation zones, and in quartz-sericite altered host rocks. Deformation zones mapped and documented by Agnico’s work at Solvik total over 55 km in cumulative strike length, which represents considerable upside exploration potential.
A total of 43 holes have been drilled to date across the project for a total of 8,364 m. Several holes have intersected gold mineralization with the best intercepts being 2.50 g/t Au over 19.4 m and 2.71 g/t Au over 8.5 m (estimated true widths). Over 100 channel samples from outcrops and boulders have returned a number of surface high grade Au-grades between 1.0 – 90.1 g/t Au.
There was little to no modern exploration conducted in the area prior to Agnico’s exploration work in 2011 and the project area remains underexplored.
Transaction Details
Pursuant to the terms of the Agreement, Gold Line will purchase the Projects from Agnico and Agnico will retain a 2% NSR royalty on the Projects, 1% of which may be purchased at any time by EMX for US$1,000,000.
Consideration for the Transaction is US$10 million, comprised of US$7 million in cash, US$1.5 million in common shares of EMX and US$1.5 million in common shares of Gold Line, which shall be paid to Agnico as follows:
Date | Cash Payments (USD) |
EMX Shares (USD) |
Gold Line Shares (USD) |
Upon signing of the Agreement | $750,000 | $375,000 | $375,000 |
On the first anniversary of the Agreement |
$1,500,000 | $500,000 | $500,000 |
On the second anniversary of the Agreement |
$1,750,000 | $625,000 | $625,000 |
On the third anniversary of the Agreement |
$3,000,000 | – | – |
Total | $7,000,000 | $1,500,000 | $1,500,000 |
As part of the Agreement, EMX will receive cash and share payments from Gold Line as set out in the table below, as well as the purchase right of 1% of Agnico’s 2% NSR royalty.
Date | Cash Payments (USD) |
Gold Line Shares Issued to EMX (USD) |
Total Payable (USD) |
Upon signing of the Agreement | – | $375,000 | $375,000 |
On the first anniversary of the Agreement |
$250,000 | $250,000 | $500,000 |
On the second anniversary of the Agreement |
$312,500 | $312,500 | $625,000 |
In connection with the entering into of the Agreement, and upon completion of the Transaction, the Company intends to pay a fee of US$200,000 to be split evenly between two arms-length third-parties who assisted in facilitating the Transaction, and to be satisfied through the issuance of common shares of Gold Line. All common shares issued in connection with the Transaction will be based on the volume-weighted average price for the 20 trading days prior to the date of issuance.
Completion of the Transaction is subject to customary closing conditions, including the approval by the TSX Venture Exchange.
The scientific and technical information in this news release has been reviewed and approved by Michael Dufresne, M.Sc, P.Geol., P.Geo, Principal and President of Apex Geoscience Ltd, a qualified person as defined by National Instrument 43-101.
About Gold Line Resources Ltd.
Gold Line is focused on advancing gold projects with significant exploration potential in prolific gold-producing regions of Sweden and Finland. Gold Line is working in one of the world’s top mining jurisdictions and emerging exploration frontiers due to its strong mineral endowment, stable tenure, straightforward permitting, favourable tax regime and supportive geopolitical landscape.
Gold Line currently holds a prospective portfolio of five gold exploration projects in Sweden: one project is in the Skelleftea belt of north-central Sweden and four projects, including the Långtjärn property, are located within the Gold Line Mineral Belt of north-central Sweden. The projects are located on a 200-kilometre Proterozoic greenstone sedimentary belt that is host to multiple gold showings and deposits.
About EMX.
EMX is a precious and base metals royalty company. EMX’s investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company’s common shares are listed on the NYSE American Exchange and the TSX Venture Exchange.
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