Botnia Exploration has signed a Joint Venture with Dragon Mining, which implies that Dragon Mining is responsible for and develops this exploration permit. Harpsund is located approx. 4 km north-east of Dragon Mining’s existing mine, called Svartliden. Harpsund constitutes the extension of the structure at the Svartliden mine, towards north and north-west.
Under the terms of the agreement, Dragon has exclusive exploration rights on the Harpsund permit for 12 months. During this period, Dragon will expend a minimum of 1.5 million SEK in exploration.
Dragon can elect to expend a further 3.0 million SEK within 3 years of the agreement date to earn a 60% interest in the Harpsund exploration permit. Upon earning the 60% interest in the permit, Dragon can elect to earn an additional 20% interest by expending another 3.0 million SEK within 5 years of the agreement date.
Dragon will be the manager of all exploration activities during the exclusive and earn-in phases. Dragon can withdraw at any time following expenditure of 1.5 million SEK.