Aurion Resources (TSXV:AU) and KoBold Metals have entered into an agreement to explore critical minerals in a section of Aurion’s Risti property in Finland. The deal provides KoBold Metals, a U.S.-based exploration company, with the right to earn a 75% interest in a 35-square-kilometer section of the property by investing $12 million in exploration over a five-year period. As part of the agreement, KoBold is required to commit an initial $1 million within the first 18 months.

Aurion Resources, a Canadian exploration company, will retain full rights to any gold or silver discoveries within the project area. The company will also have the ability to continue its own exploration efforts alongside KoBold during both the earn-in phase and the subsequent joint venture phase. Once KoBold fulfills the terms of the earn-in agreement, the companies will establish a joint venture, in which Aurion will hold a 25% stake. If either company’s stake in the joint venture falls below 10%, it will be converted into a 2% net smelter returns royalty.

KoBold Metals is known for its use of artificial intelligence and geoscience in mineral exploration, with backing from high-profile investors, including Bill Gates’ Breakthrough Energy Ventures. The company focuses on identifying deposits of critical minerals necessary for the global energy transition. The partnership with Aurion will allow KoBold to apply its advanced exploration technology to the Finnish property while Aurion maintains its focus on gold and silver resources.

The Risti property is located in a region known for its base metal potential, with several significant deposits nearby. These include the Kevitsa mine, which is operated by Boliden and contains nickel, copper, and platinum group elements, as well as Anglo American’s Sakatti discovery, located 12 kilometers from the Risti property. The presence of these deposits highlights the area’s mineral potential, making it an attractive location for further exploration.

The agreement is a strategic development for both companies. Aurion will benefit from KoBold’s technological expertise and financial commitment to critical minerals exploration, while KoBold gains access to a promising area in Finland with the potential for key energy transition metals. The exploration program is expected to begin in the coming months, as the companies prepare to deploy their teams to the site.

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.