Subscribe
Be the first with the news that moves the market- Kenorland Minerals (KLD) has signed a property option agreement with Sumitomo Metal Mining Canada Limited (SMMCL)
- The option agreement empowers Sumitomo Metal Mining to acquire up to a 70-per-cent interest in the O’Sullivan Project
- The O’Sullivan Project covers 27,595 hectares of mineral tenure within the Abitibi Greenstone Belt (AGB) along the Casa Berardi Deformation Zone (CBDZ)
- Kenorland Minerals Ltd. is a Vancouver-based mineral exploration company whose focus is early to advanced stage exploration in North America
- Kenorland Minerals Ltd. opened trading at $0.77
Kenorland Minerals (KLD) has signed a property option agreement with Sumitomo Metal Mining Canada Limited (SMMCL).
The option agreement empowers SMMCL, a wholly-owned subsidiary of Sumitomo Metal Mining Co. Ltd., to acquire up to a 70-per-cent interest in the O’Sullivan Project in the Abitibi greenstone Belt of Northern Quebec.
SMMCL can earn an initial 51-per-cent interest in the project by incurring an aggregate of $4,900,000 in mineral exploration expenditures on or before the third anniversary of the option agreement. Out of that amount, $1,200,000 is for guaranteed expenditures within the first three years).
Kenorland will act as project operator in return for a management fee equal to 15 per cent of the total expenditures during the first earn-in period.
Following the earning of a 51-per-cent interest, SMMCL has the option to earn an additional 19 per cent (for a total of 70-per-cent interest).
This will be done by delivering a NI-43-101-compliant feasibility study on the project disclosing mineral resources in the measured and indicated categories of not less than 1,500,000 ounces of gold (or AuEq) within an additional seven years.
Once SMMCL has earned a 70-per-cent interest, Kenorland will have the option to forego a minority joint venture interest and immediately vest a net smelter returns royalty interest of 4 per cent on the property.
In the event of joint venture participation, any party which dilutes to below a 10-per-cent interest will exchange its joint venture interest for a net smelter returns royalty of 3 per cent (subject to a 1.00-per-cent buyback for $1,000,000).
The O’Sullivan Project covers 27,595 hectares of mineral tenure within the Abitibi Greenstone Belt (AGB) along the Casa Berardi Deformation Zone (CBDZ).
The CBDZ is one of the primary structures that control orogenic gold mineralization in the belt and hosts the active Casa Berardi mine that has produced over 1.9 million ounces of gold since 1988, with recent proven and probable reserves of 1.7 million ounces.
Kenorland Minerals Ltd. is a Vancouver-based mineral exploration company focusing on early to advanced-stage exploration in North America.
Kenorland Minerals Ltd. opened trading at $0.77.
