VANCOUVER — Orex Minerals (TSXV: REX) has struck a letter of intent (LOI) on its Barsele gold and base metal property in the prolific mining district of Skelleftea, 600 km north of Sweden’s capital city of Stockholm, with Agnico Eagle Mines (TSX: AEM; NYSE: AEM).
Under the terms of the LOI, Agnico will acquire a 55% interest on payment of US$10 million, and a further 15% by completing a prefeasibility study on the project.
“Our intention was to entice a major mining company to get involved,” vice-president of exploration Ben Whiting told The Northern Miner during an interview. “And before we even had the chance to bring the deposit up to its full potential, Agnico came knocking on our door.”
Orex acquired Barsele in 2011, and since then the company has almost doubled the resource to 14.1 million tonnes at 1.2 g/t Au for 547,000 indicated oz of gold, and 20.2 million tonnes at 1.02 g/t Au for 627,000 inferred oz of gold (with 0.6 gram gold cut-off).
Read the complete article at NorthernMiner.com/news/orex-agnico