Fresh from financing High River Gold’s (HRG-T) Taparko gold project in Burkina Faso, gold royalty house Royal Gold (RGL-T, RGLD-Q) has inked a deal that will fund the Finnish projects of Taranis Resources (TRO-V).
Royal’s investment will start with $375,000 to buy 937,500 shares of Taranis and 468,750 warrants, exercisable at 55 for two years. Both shares and warrants are subject to a four-month hold.
Taranis will also deal Royal a 2% net smelter return on the Kettukuusikko gold project in Lapland for US$500,000, which will fund drilling to start in early December. Royal has an option to bring its interest in Kettukuusikko to 51% by funding a further US$600,000, and if it finances the project through to a final feasibility study it earns another 24%, to bring its interest to 75%.
In drilling this spring at Kettukuusikko, Taranis intersected new mineralization about 800 metres north of the known mineralized zone there, on a northwest-striking structure called the Sirkka shear. The mineralization lies on the west side of the shear, which had previously been thought to be the western limit of gold mineralization at Kettukuusikko.
There is no resource calculated yet at the project, but Taranis has previously stated it expected to be able to calculate one based on its own drilling, plus re-analysis of drill cores preserved by the Finnish Geological Survey.
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