As of Oct. 31, Agnico confirmed it has spent $7,545,816 on exploration at the Barsele project in Sweden.
Agnico, as operator of the project, has increased its project budget for 2016 and added a fourth drill to continue expansion drilling, validation drilling, regional drilling and basal till drilling.
Barsele has a 45% ownership in Gunnarn Mining AB, the corporate entity in Sweden that owns the project, and Agnico has 55% ownership. Agnico has the option to increase its interest by delivering a National Instrument 43-101-compliant prefeasibility study on the project, at which point Agnico’s interest in the project will increase to 70%.
Until the prefeasibility study is delivered, Agnico continues to be responsible for all costs and expenses on the project. A final payment of $2mln in cash or shares is due to Orex Minerals Inc. (CVE:REX) in June, 2017, from Agnico.
Barsele’s main property is the Barsele gold project in Vasterbottens Lan, Sweden, a joint venture with Agnico.
Story by ProactiveInvestors