MinMet, the Irish exploration group, has struck a deal with Vancouver-based North American Gold to speed up the development of two of its major gold projects in Sweden.
American Gold has secured the option to take a 60 per cent interest in the two sites at Barsele, in the northern part of Sweden, for $3.5 million (€3.05 million) in exploration spending.
MinMet chief executive Mr Michael Nolan said the agreement would allow it to "fast- track" the development of the two properties, consisting of seven claim blocks including the Central Zone and Norra Zone properties.
The project is located around 100 miles from MinMet's Björkdal gold mine and is sited along what has been termed Sweden's "gold line".
American Gold has the option to buy a 60 per cent stake in the Central Zone concession by incurring $2 million in exploration costs, of which $500,000 will be spent in the first year of the arrangement.
The work will include 2,000 metres of diamond drilling and preliminary metallurgical test work.
The deal also includes the issue of 200,000 American Gold shares to MinMet over three years.
In a separate deal, American Gold has taken an option oa similar stake in the adjoining Norra Zone property by agreeing to meet $1.5 million of exploration costs within three years, of which $250,000 will be spent on diamond drilling within the first 12 months.
There is also provision for an issue to MinMet of a further 200,000 American Gold shares.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)