Nordic Mines AB signed a heads of agreement with Firesteel Resources Inc. allowing the latter to acquire a majority stake in the Laiva gold project in Finland in order to take the operation back into production.

The company will initially grant an option to Firesteel to acquire up to 60% of Nordic Mines unit Nordic Marknad AB, according to an April 10 statement.

Firesteel can acquire 10% of Nordic Marknad by paying €1 million within 30 days and a further 50% stake by paying C$20 million within the next 90 days.

Firesteel will then have a 12-month option to acquire the remaining 40% interest in Nordic Marknad by either issuing shares or paying cash.

Following the 60% earn in, Firesteel and Nordic Mines-hired private miner Legacy Hill Resources will work to bring the Laiva mine back into production.

The transaction is subject to the parties entering into definitive agreements as well as various approvals.

Nordic Mines carried out a rights issue in March to further develop Laiva.