Canada-based exploration company Goldsky Resources has struck a deal with major Agnico Eagle to acquire the remaining 55% interest in the Barsele gold project in Sweden, consolidating full ownership of the asset.

Under the agreement signed on Wednesday, Goldsky will acquire Agnico Sweden’s interest in Gunnarn Mining, which owns and operates Barsele, for $20-million in cash, 75 509 577 Goldsky shares and the grant of a 2% net smelter return royalty.

On completion of the transaction, Goldsky will hold a 100% interest in Gunnarn and Barsele, while Agnico is expected to own about 32.5% of Goldsky’s issued shares on a non-diluted and partially diluted basis.

Bluesky was created in December, following the merger of First Nordic Metals and Mawson Finland. The company is anchored by the Barsele project, located in northern Sweden’s Västerbottens Län, about 600 km north of Stockholm. It hosts indicated mineral resources of 7.88-million tonnes at 1.27 g/t gold for 320 781 oz and inferred resources of 28.75-million tonnes at 1.98 g/t gold for 1.83-million ounces.

Barsele is central to Bluesky's broader landholding in the Gold Line greenstone belt, with the combined licence package covering about 80 000 ha. 

“The acquisition of the remaining 55% interest in the Barsele project from Agnico is a transformational milestone in Goldsky’s history and future growth," commented president and CEO Russell Bradford.

"We now have 100% control of what we believe has the potential to become a Tier 1 gold project in a world class mining jurisdiction in Sweden."

Bradford noted that Goldsky was well resourced to increase the development of the Barsele project, citing its recent successful C$80-million fundraising.

Meanwhile, Agnico stated that the transaction reflected its ongoing portfolio optimisation efforts.

"Over the last ten years, Agnico Sweden's exploration programme at the Barsele project was successful at expanding its mineral resources. As additional exploration work and studies are required to advance the project toward development, the company believes the Barsele project will benefit from being Goldsky's primary focus, while it retains exposure to future upside. Divesting its direct interest in the Barsele project aligns with the company's prioritisation of its high-quality internal project pipeline, which is expected to drive the next phase of growth."