- Sienna Resources (SIE) has signed an option agreement with EMX Royalty Corporation to acquire the Bleka and Vekselmyr gold projects in Norway
- Under the terms of the deal, Sienna may wholly acquire the properties by issuing a total of two million common shares and assuming C$250,000 in exploration expenses
- EMX Royalty Corporation will also retain a three per cent net smelter return royalty on the projects, a portion of which may be purchased by Sienna according to certain conditions
- Sienna says it acquired the projects based on past mining activities at Bleak and outcropping gold mineralisation at Vekselmyr
- Sienna Resources (SIE) is currently up 5.56 per cent and is trading at 9.5 cents per share
Sienna Resources (SIE) has signed an option agreement with EMX Royalty Corporation to acquire the Bleka and Vekselmyr gold projects in Norway.
Both projects are located within a substantially under-explored greenstone belt in the south of the country. The Bleka Project was discovered in 1880 and mined periodically until 1940, with historic production estimated at approximately 5,300 troy ounces of gold at an average grade of 36 grams per tonne.
The nearby Vekselmyr license, which lies to the south of the Bleka Project, covers outcropping gold mineralisation of similar orogenic-style veins.
Under the terms of the option agreement, Sienna may acquire a 100 per cent interest in the two properties by issuing 2 million common shares to EMX Royalty Corporation and assuming C$250,000 in exploration expenses.
This includes the issuance of 500,000 common shares within five days of approval from the TSX Venture Exchange, with a further 1.5 million shares to be issued at the end of the two-year agreement. Sienna will also be required to reimburse EMX for its acquisition costs and expenses related to the Bleka and Vekselmyr projects.
Jason Gigliotti, President of Sienna Resources, said the acquisition represents a tremendous opportunity to acquire high-quality gold projects in a politically stable, mining friendly jurisdiction.
“This gold belt has been underexplored and we plan to commence work right away. There is a three-kilometre unique vein swarm within this greenstone hosted orogenic plug with a folded nose formation.
“We are extremely optimistic about Sienna’s short and long term prospects when you factor this new project coupled with work expected to commence shortly on our Finland and Ontario projects at a time when we just closed an oversubscribed placement of $2 million,” he added.
Sienna Resources (SIE) is currently up 5.56 per cent to 9.5 cents per share at 12:04pm EDT.