Aurion tables refusal rights update on B2Gold joint venture in Finland

Aurion Resources Ltd. [AU-TSXV, AIRRF-OTCQX] said it has elected not to exercise its right of first refusal 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.

Aurion said it will continue to own its 30% interest and participate as it historically has in the joint venture company

Aurion had previously been 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, which owns exploration properties in the Central Lapland Greenstone Belt.

“After careful consideration, Aurion has chosen not to exercise its right of first refusal to acquire B2Gold’s 70% interest in the joint venture company,” said Aurion CEO Matti Talikki.  “Aurion is keen to minimize shareholder dilution and continue as a partner in the joint venture company to unlock further value as the area is developing towards a new gold camp,” Talikki said.  “Aurion greatly appreciates the excellent partnership with B2Gold over the past several years and welcomes Rupert Resources as a new partner in the joint venture company, it the proposed transaction with B2Gold is completed.’’

A notice of sale and offer dated March 11, 2024, 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.

Aurion had until May 9, 2024, to decides whether or not to exercise its right of first refusal.

As a result of the company electing not to exercise its rights under the agreement, B2Gold now has the ability to sell to Rupert its 70% interest in the joint venture company for the consideration and on terms and conditions set forth in the notice of sale and offer.

On Thursday, Aurion shares were unchanged at 73 cents. The shares are trading in a 52-week range of 77 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, one  of which is located approximately 1.5 kilometres west of Rupert Resources’ Ikkari Discovery.