Firesteel Resources Inc. and Nordic Mines AB Agree to a Revision of Previously Announced Agreement
- Firesteel and Nordic Mines AB will enter into a joint venture agreement to put the Laiva Mine assets back into production- Initially the joint venture will be 51% Firesteel and 49% Nordic Mines AB on investment of $18,000,000
- Firesteel will acquire a further 9% on the investment of a further $4,000,000 and production of 5000 ounces of gold
- The joint venture has the support of the Nordic board and major shareholders.
- Firesteel has voting lock agreements for 40% of Nordic Mines shares to be voted in Firesteel's favour
- This is considered an arm's length transaction
Vancouver, June 15, 2017 - Firesteel Resources Inc. (TSX-V: FTR) ("Firesteel" or the "Company") today announced that it has modified the terms of the agreement signed on June 7, 2017 by signing an MOU with Nordic Mines AB (OMX- NOMI) to form a joint venture to return Laiva Mine to production. The Laiva mine is a fully permitted past producing gold mine near Raahe, Finland, and is one of the largest gold mining projects in the country.
Laiva Mine has a near new 250 tonne per hour mill and processing plant, 2 open pits and will be returned to production within 6 - 9 months once work crews begin modifications to the mill.
The terms of the transaction are as follows:
Firesteel will initially acquire 51% of the joint venture on the investment of $18,000,000. NOMI will have 49% of the joint venture for contributing the mill, mine and exploration assets. Following this investment, FTR will acquire a further 9% after investing a further $4,000,000 and on production of 5,000 ounces of gold. This will take Firesteel's ownership to 60%.
The remaining balance of Nordic Mines will be acquired at fair market value once the mine is returned to production.
Nordic Mines has granted Firesteel exclusivity for 60 days and has signed a standstill agreement valid for 60 days. In addition Firesteel has voting lock up agreements from shareholders for 40% of the shares in favour of the agreement. Major shareholder Lau Su is also a signatory to the agreement.
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 fully arms length.
The transaction is further subject to the parties entering into a definitive agreement. The legal documentation is due before 25th June 2017 and is well advanced.
Michael Hepworth, President and CEO of Firesteel said; "Firesteel agreed to renegotiate the terms of the agreement in order to garner additional support for the transaction from Nordic Mines shareholders. We are well advanced in our financing and a binding term sheet is imminent. We believe that once we have shareholder approval the agreement can be closed within 30 - 60 days."
Though no NI 43-101 technical studies have yet been completed by Firesteel, the Company expects the results of this work to be announced within the next 7 days. This work will include qualification of historic data and issuance of Technical Reports for Resource Estimate 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
-Star Target - In 2014 a total of 6221.5 meters were drilled in 19 holes. 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
For further information, please contact:
Michael Hepworth, President and Chief Executive Officer
(416)419 5192
mhepworth@firesteelresources.com
www.firesteelresources.com
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Advisory Regarding Forward Looking Statements
This news release contains forward-looking statements. Users of forward-looking statements are cautioned that actual results may vary from forward-looking statements contained herein. Forward-looking statements include, but are not limited to: expectations, opinions, forecasts, projections and other similar statements concerning anticipated future events, conditions or results that are not historical facts. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". While the Company has based these forward-looking statements on its expectations about future events as at the date those statements were prepared, the statements are not a guarantee of the Company's future performance. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurance that such expectations will prove to be correct.
The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement and are made as of the date of this new release. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
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