PERTH (miningweekly.com) – Canadian gold producer Kinross Gold Corporation has struck a $9.5-million farm-in agreement with the Finnish subsidiary of ASX-listed junior S2 Resources.
Under the agreement, Kinross would spend up to $9.5-million on exploration over four exploration licence and licence applications in the Central Lapland greenstone belt, in Finland, earning a 70% interest in the project.
The Canadian major would be required to spend a minimum of $3.5-million over the first three years of the farm-in agreement.
The farm-in agreement covers some 83 km2 of S2’s noncore gold ground in Finland, with the Australian junior on Thursday saying that it would retain full ownership of 498 km2 of ground containing the Aarnivalkea gold prospect and the Ruopas Isovaara nickel/copper target.
“We are delighted to be partnering with a respected major gold producer such as Kinross, a company with a strong operating and exploration track record driven by its technical excellence and safety,” said S2 CEO Matthew Keane.
“This transaction will expedite Aarni’ and Ruopas targets. Securing prospective tenure in the Central Lapland greenstone belt is becoming increasingly competitive, particularly with the recent exploration success of Rupert Resources and Aurion Resources. As such, we see this agreement as a win-win outcome for both companies and we look forward to working with Kinross.”