Hannan Metals (HAN.V) on Wednesday said it entered into an option agreement to buy up to 100% of three high-grade gold projects known as the Stavatrask, Skelleftea North and Adelfors projects, totaling 8,405 hectares in Sweden, with permitted drilling at Stavatrask to start this month.
A rig will be mobilized in this month for a staged program of up to 2,000 meters to test a direct analogue of Boliden, located just 20 kilometers to the south on the same regional-scale shear system, it said. The company has the sole and exclusive right to conduct initial assessment work on the property for six months from June 4.
During the grant period, Hannan must complete the initial drill program and may issue up to one-million shares to maintain its option. Assuming positive drill results, the company can exercise the option for a 100% interest in the property, by spending at least C$2 million on exploration and issuing a further 3.5-million shares.
A 2.0% Net Smelter Return royalty is payable by Hannan on completion of the option exercise, which it may buy back in full at any time for C$3 million. The company may also cancel the option agreement at any time at its sole discretion, with no further share issuance or expenditure obligations, it added.
Shares of the company were last seen down $0,02 to $0.48 on the TSX Venture Exchange.
Price: $0.48, Change: $-0.02, Percent Change: -4.00%