Vancouver, BC / TheNewswire / April 10, 2017 / FIRESTEEL RESOURCES INC. (TSX-V: FTR) ("Firesteel" or the "Company") today announced that it has signed a (non-binding) heads of agreement with Nordic Mines AB (OMX- NOMI) for an option to ultimately acquire 100% of Nordic Mines Marknad ("NMM"). NMM is a wholly-owned subsidiary of Nordic Mines AB. Nordic Mines Marknad owns 100% of Nordic Mines OY. Nordic Mines OY owns 100% of the fully permitted, past producing Laiva Mine near Raahe in Finland, one of the largest gold projects in Finland.
The terms of the transaction are as follows: Firesteel will initially acquire 10% of Nordic Mines Marknad for EUR1,000,000. Following this investment, FTR will obtain an option (exercisable within 90 business days of its first investment) to invest a further CDN $20 million to acquire a further 50% of NMM. The final 40% could then be acquired by the Company at fair market value within 12 months of completing the earn in.
The transaction is subject to shareholder and regulator approval and is subject to the rules of TSX Venture Exchange ("TSXV") and the rules of Nasdaq OMX Stockholm Small Cap ("Nasdaq OMX"). The transaction is further subject to the parties entering into of definitive agreements.
Michael Hepworth, President and CEO of Firesteel said; "Over the last 12 months we have examined many opportunities; however, this one checked all the boxes as it provides a short term opportunity for Firesteel to acquire a past producer, conduct the appropriate engineering studies and return it to production in a releatively short period. More importantly Finland is a safe mining jurisdiction and work can be conducted year round. There is good exploration potential within the mine property and the region in general.. Since Nordic Mines OY has been in administration, Legacy Hill Resources in London have been managing the project and have done a great deal of work to advance the project to a point where a deal of this nature could be achieved. Firesteel will continue working with them as we move the project forward."
Though no NI 43-101 compliant technical studies have yet been completed by Firesteel, the Company expects to commission this work promptly. This work would include qualification of historic data and issuance of Technical Reports for Resource Estimate, PEA and PFS to conform to NI 43-101 standards. Given favorable results from the foregoing, as well as the near-new condition of the process plant and infrastructure, the Company intends to proceed to production at the earliest possible date.
About the Company
Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world.
Firesteel currently has one highly prospective property in British Colombia.
The Star property is currently operated under a Joint Venture agreement between Firesteel (49%) and Prosper Gold. (TSX-V: PGX) (51%).
Previous highlights of the Star property include:
- 6,700 Ha property hosts five significant Cu-Au targets within close proximity with large tonnage, high grade potential.
- Star Target - In 2014 a total of 6221.5 meters were drilled in 19 holes. To date the deposit which measures 550 meters north-south and 350 meters east-west and remains open. Recent drill results include 107m of 0.77% Cu & 0.41 g/t Au including 64m of 1.12% Cu & 0.59 g/t Au (previously reported September 23, 2014).
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, P.Geo., a Qualified Person under National Instrument 43-101 and a director of the company.
For a detailed overview of Firesteel Resources Inc. please visit: www.FiresteelResources.com
