Mr. Michael Hepworth reports FIRESTEEL RESOURCES INC. SIGNS HEADS OF AGREEMENT FOR OPTION WITH NORDIC MINES AB Firesteel Resources Inc. has signed a (non-binding) heads of agreement with Nordic Mines AB for an option to ultimately acquire 100 per cent of Nordic Mines Marknad (NMM). NMM is a wholly owned subsidiary of Nordic Mines AB. Nordic Mines Marknad owns 100 per cent of Nordic Mines OY, which owns 100 per cent of the fully permitted, past-producing Laiva mine near Raahe in Finland, one of the largest gold projects in Finland. The terms of the transaction are as follows: Firesteel will initially acquire 10 per cent of Nordic Mines Marknad for one million euros. Following this investment, Firesteel will obtain an option (exercisable within 90 business days of its first investment) to invest a further $20-million to acquire a further 50 per cent of NMM. The final 40 per cent could then be acquired by the company at fair market value within 12 months of completing the earn-in. The transaction is subject to shareholder and regulator approval and is subject to the rules of TSX Venture Exchange and the rules of Nasdaq OMX Stockholm Small Cap. The transaction is further subject to the parties entering into of definitive agreements. Michael Hepworth, president and chief executive officer of Firesteel, said: "Over the last 12 months, we have examined many opportunities; however, this one checked all the boxes as it provides a short-term opportunity for Firesteel to acquire a past producer, conduct the appropriate engineering studies and return it to production in a relatively short period. More importantly, Finland is a safe mining jurisdiction, and work can be conducted year-round. There is good exploration potential within the mine property and the region in general. Since Nordic Mines OY has been in administration, Legacy Hill Resources in London have been managing the project and have done a great deal of work to advance the project to a point where a deal of this nature could be achieved. Firesteel will continue working with them as we move the project forward." Though no National Instrument 43-101-compliant technical studies have yet been completed by Firesteel, the company expects to commission this work promptly. This work would include qualification of historical data and issuance of technical reports for a resource estimate, preliminary economic assessment and prefeasibility study to conform to NI 43-101 standards. Given favourable results from the foregoing, as well as the near-new condition of the process plant and infrastructure, the company intends to proceed to production at the earliest possible date. About Firesteel Resources Inc. Firesteel is an exploration-stage junior mining company engaged in the acquisition and exploration of prospective precious and base metal properties in Canada and stable jurisdictions around the world. Firesteel currently has one highly prospective property in British Columbia. The Star property is currently operated under a joint venture agreement between Firesteel (49 per cent) and Prosper Gold (51 per cent). Qualified person The scientific and technical information in this news release has been reviewed and approved by Paul Sarjeant, PGeo, a qualified person under NI 43-101 and a director of the company. We seek Safe Harbor. © 2020 Canjex Publishing Ltd. All rights reserved.
Firesteel Resources has signed an agreement to acquire the final 40% of Nordic Mines Marknad , a subsidiary of Nordic Mines AB . Firesteel will acquire an initial the final 40% of NMM for €20m ( €20m ), with an option to pay €1m for a further 50% of the company, and the final 40% within 12 months of completing the earn-in stage.