Sienna Resources Inc. entered a one-year option agreement to acquire the Slättberg cobalt-nickel-copper project in Sweden from EMX Royalty Corp.
The project consists of two adjacent exploration permits covering approximately 9,513 contiguous acres and hosts massive sulfide mineralization defined to a depth of about 100 meters and remaining open at depth and along strike. The property also hosts at least 12 historical mine sites.
Sienna aims to begin drilling in early 2018.
The company will issue 10 million common shares and spend at least C$500,000 on exploration, including at least 750 meters of drilling, according to its Dec. 4 statement.
EMX Royalty will retain a 3% net smelter royalty on the properties forming the project, one-sixth of which Sienna can repurchase for C$1.5 million within six years of execution of the deal.
After exercising the option, Sienna will raise C$3 million for development of the project and other activities, after which EMX Royalty can participate pro rata in financings by the company to maintain its stake.