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Firesteel Resources Signs $20.6 Million LOI to Acquire Laiva Mine Gold Property, Finland

Published: August 16, 2017 |

[Click image to enlarge]

Firesteel Resources has signed a letter of intent with Pandion Mine Finance, LP for a financing of US$20.6 million via a prepaid forward gold purchase agreement. Proceeds will be used for the acquisition of up to 60 percent of the Nordic Mines Marknad AB, owner of the past producing Laiva Mine gold property in Finland.

Nordic Mines Marknad will be operated as a joint venture between Nordic Mines AB and Firesteel. Firesteel will be the operator of the joint venture.

“The Laiva Mine is a fully permitted past producing asset and securing this acquisition marks a major step forward for Firesteel. Previous engineering and geological reports identify considerable gold mineralization that the company is treating as a historical estimate and we are committed to moving swiftly to ensure the rapid advancement of this project. While the transfer of funds is contingent upon the completion of the remaining due diligence and the negotiation and execution of a Prepaid Forward Gold Purchase Agreement, our own extensive due diligence indicates there should be no barriers to the closing of this transaction,” said Michael Hepworth, president and CEO of Firesteel.

“We visited the Laiva Mine with a multifaceted technical team to conduct technical due diligence during the last week of July and are excited about a restart of the mine. We are delighted to be working with Firesteel on its acquisition and restart of Laiva,” said Joe Archibald, Founding Partner of Pandion.

The US$20.6 million financing is subject to the completion of the remaining due diligence and the negotiation and execution of a prepaid forward gold purchase agreement. On completion of the agreement, funds will be received in two tranches of US$15,600,000 with a tenor of 54 months and US$5,000,000 with a tenor of 46 months. These funds will be used to fund necessary mine capital equipment and efficiency upgrades and the commencement of mining operations as well as general and administrative costs and consulting fees.

Each tranche will have a grace period of 14 months after which the company will deliver to Pandion a total of 60,540 ounces of gold for both tranches over the following 40 months. The company will receive an amount per ounce of gold equal to the market price at the time, less a fixed discount. During the term of the agreement, Pandion will also share in the upside on any increase in metal prices. The company will have the right to buy out and terminate the agreement at any time and its obligations under the agreement will be secured by a first charge over the company’s assets.


About Firesteel
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 is currently working to evolve from an exploration company to becoming a junior producer.

To stop by Firesteel’s website, CLICK HERE


About Pandion Mine Finance
Pandion, headquartered in New York City, is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.

To stop by Pandion’s website, CLICK HERE


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