Aurion mulls options after B2Gold unveils Rupert Resources offer
Aurion Resources Ltd. [AU-TSXV, AIRRF-OTCQX] is mulling its right of first refusal option after being notified that Rupert Resources Ltd. [RUP-TSXV] has offered to acquire B2Gold’s interest in a gold exploration joint venture in in northern Finland that is currently held 70% by B2Gold and 30% by Aurion.
The notice of sale and offer indicates that B2Gold and Rupert entered into a letter of agreement that would see Rupert issuing to B2Gold 28.64 million common shares of Rupert, implying a total value of $102.8 million (based on the market price of Rupert shares on March 8, 2024) in exchange for B2Gold’s 70% interest in the joint venture company.
The transaction is conditional upon the execution of a definitive agreement and investor rights agreement, completion of mutual due diligence and applicable regulatory approvals.
The notice of sale and offer was provided to Aurion pursuant to a shareholders agreement dated August 14, 2019 between B2Gold, Aurion and the joint venture company. Under the agreement, Aurion has the right of first refusal with respect to the proposed sale by B2Gold of its interest in the joint venture company. The right of first refusal gives Aurion the option to acquire B2Gold’s interest in the joint venture upon terms no less favourable than those offered by Rupert.
Aurion has until May 9, 2024, to decides whether or not to exercise its right of first refusal.
On Tuesday, Aurion shares rose 1.7% or $0.01 to 59 cents. The shares are trading in a 52-week range of 82 cents and 39 cents.
Aurion is focused on gold exploration in the Central Lapland Greenstone Belt (CLGB) of northern Finland, where its land holdings cover 70,000 hectares.
The joint venture with B2Gold covers approximately 293 square kilometres along the major crustal scale Sirkka Shear Zone and includes a number of discoveries, such as Helmi (2.05 g/t gold over 77.50 metres), Kutuvuoma (16.47 g/t gold over 11.0 metres), Soretiavuoma (48 g/t over 1.1 metre), Sinerma (0.54 g/t gold over 40.2 metres), Kiekeromaa (5.8 g/t gold over 5.0 metres) and Kettukuusikko (4.33 g/t gold over 20.4 metres).
In late 2021, B2Gold drilled a target (the Helmi Discovery) approximately 1.5 kilometres west of Rupert Resources’ Ikkari Discovery. Drilling intersected broad zones of gold mineralization, starting near surface. The Helmi area covers approximately 2.0 kilometres of strike length of the 8.0 kilometres long sequence of prospective geology along the domain boundary of the eastern part of the joint venture property extending from the Ikkari Discovery to the Kutuvuouma test pit.
Rupert’s primary focus is the Rupert Lapland Project which consists of the multi-million-ounce Ikkari Discovery, permitted Pahtavaara mine and mill within a land package of 634 square kilometres.
According to a November, 2023 resources estimate, Ikkari contains an indicated resource of 4.08 million ounces.