Dark Horse Acquires Finland Gold and Sweden Tungsten Projects, Plans First Drilling Before End-2020  

Summary

• Dark Horse has executed permit purchase agreements (PPAs) with Sotkamo Silver AB, marking initial acquisition of the Finland Gold and Sweden Tungsten portfolio of exploration permits.
• Transfer of the acquired portfolio of exploration permits will now commence from Sotkamo to two wholly owned Finnish subsidiaries of DHR.
• With the PPA execution, the Company plans to commence its first drilling program, primarily at the most advanced Hopeavuori permits in Tampere Gold Project before end-2020.
• Negotiations to finalise a drilling contract are underway.

Experienced gold and base metals explorer, Dark Horse Resources Ltd (ASX:DHR) has announced to have executed the binding Permit Purchase Agreements (PPAs) with Sotkamo AB. This marks the initial acquisition of highly prospective gold exploration permits or the Tampere Gold Project in Finland and a group of tungsten exploration permits or the Bergslagen Tungsten Project in Sweden by DHR.

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Transfer of Gold and Tungsten Exploration Permits to DHR Subsidiaries

Transfer of the acquired portfolio of exploration permits will now commence, to two wholly owned Finnish subsidiaries established by Dark Horse from Sotkamo. One subsidiary will hold the Finland Gold permits (7 - Hopeavuori (2 permits), Isovesi, Järvenpää, Kalliojärvi, Lavajärvi and Metsäkylä), while the other subsidiary will hold the Sweden Tungsten permits (7 - Yxsjöberg, Gubbo, Hörken, Högfors, Sandudden and Gänsen Prospects).

The transfer process is expected to take up to several months, which is the normal time period for such permit transfers in the two European countries.

The transaction involves a payment of €150,000 upon authorised transfer documentation of the permits to DHR.

Drilling Program at Hopeavuori and Kalliojärvi Prospects

Dark Horse plans to undertake drilling to target the most advanced Hopeavuori permits and priority targets at the Kalliojärvi prospect. The technical team compiled and assessed the historical geological data during the recent months and has successfully designed a staged and comprehensive exploration program for the Tampere Gold Project in Finland. The Company plans to progress on the project towards defining a JORC mineral resource within the upcoming 12 months.

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Initially, the program is scheduled to include several thousand metres of diamond drilling in the identified mineralised areas and thereafter, it will follow mineralisation structures along strike to further test their extent. The planning of the exploration program is already underway along with the permit transfer process.

Dark Horse is in negotiations to engage a local, reputed, and experienced drilling company apart from the permitting, logistical planning and creating a stronger technical team.

Way Forward for Dark Horse Following Portfolio Strengthening

Dark Horse plans to undertake the following steps to ensure growth and development of the projects:

• Permit transfer of the European gold and Tungsten projects to the recently floated Dark Horse’s Finnish subsidiaries and finalise the transaction currently underway with Sotkamo
• Planning and securing logistics and permissions required for the exploration and drilling program at the Tampere Gold Project
• Finalise a drilling contract, for which negotiations are ongoing
• A comprehensive review and assessment of the Tungsten resources at the exploration permits within the Bergslagen Tungsten Project in Sweden
• Implementation of ground exploration programs, scheduled for the last quarter of 2020
• Consider further acquisition of mineral projects to complement and strengthen the existing mineral projects’ portfolio.
• Progress with the investigations towards a dual listing on one of the exchanges in Europe

As Dark Horse has recently raised capital a little under AU$2 million, the Company remains well cashed to successfully execute the above plans.

DHR stock was trading at AU$0.002 a share on 18 August 2020 (AEST 11:34 AM), with a market capitalisation of AU$12.11 billion.

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