Drake Resources secures Norwegian rights
THE BOURSE WHISPERER: Drake Resources has acquired exploration rights to around 100 square kilometres of prospective copper and zinc ground in the Grong District of Nord Trondelag in Norway known as the Gjersvik project.
Drake claims relative to geology and mine locations Joma
Naeringspark claims outlined with dashed line. Source: Company
announcement
The company said the main reason it was attracted by the project was that the rights are located in a proven mining area, are close to infrastructure and have not had the benefit of modern exploration technologies.
The acquisition is in line with the company’s strategy to build a portfolio of precious and base metal resources in Scandinavia.
The rights include nine 100 per cent Drake claims, including the historic Gjersvik mine, as well as an Exploration and Exploitation (Mining) Agreement over the Joma mine, which closed in the 1990s.
“The Joma-Gjersvik project provides an exciting addition to Drake’s portfolio of advanced projects in a proven and not fully exploited mining district,” Drake Resources managing director Dr Bob Beeson said in the company’s announcement to the Australian Securities Exchange.
“We are happy to be working closely with the local community.
“Our joint strategy is to discover deposits, using Drake’s expertise and modern technologies, which could support a new project development in the highly prospective region.
“Our exploration programs’ aim is to add to the considerable mineralisation left in the mine when it closed due to low copper prices.”
The Exploration and Exploitation Agreement has been signed with Joma Naeringspark (JN), the commercial branch of the Røyrvik Commune and the owners of two claims which contain the Joma mine/project.
Under the terms of the Exploration and Exploitation Agreement with Joma Naeringspark, Drake will have an exclusive right to explore the claims to end 2015 and will:
– Pay Norwegian Kroner (NOK) 75,000 (~A$13,000) to JN on signing the agreement and commit to a NOK 250,000 (~A$42,000) exploration program in calendar 2012 on the two JN claims, commencing with a helicopter borne aeromagnetic survey in August 2012;
– Have the right to withdraw from the agreement at the end of 2012 or anytime thereafter;
– Undertake, should it commit to continue, to pay NOK 75,000 to JN at the start of each calendar year to end 2015 and spend NOK 750,000 (~A$130,000) on exploration in each year to end 2015;
– Undertake to employ locally where possible; and
– In December 2015 Drake can exercise a right to apply for an extraction licence in its sole name in exchange for a one per cent Net Smelter Return royalty payable to Joma Naeringspark.