- Kenorland Minerals (KLD) has acquired 65,657 hectares of mineral claims within the Birch-Uchi Greenstone Belt
- Through an option agreement, Kenorland has been granted the exclusive option to acquire a 100% interest in the Curie Lake and Root Lake West properties
- In order to exercise the option, Kenorland will make aggregate cash payments of $175,000 and issue common shares with an aggregate value of $175,000
- Kenorland Minerals Ltd. (KLD) is a mineral exploration company based in Vancouver, British Columbia
- Kenorland Minerals Ltd. (KLD) is up 1.14 per cent, trading at C$0.89 per share at 9:45 am ET
Kenorland Minerals (KLD) has acquired 65,657 hectares of mineral claims within the Birch-Uchi Greenstone Belt, in the Red Lake district of Northwestern Ontario.
Kenorland has also entered into an option agreement with a private Ontario company. Kenorland has been granted the sole and exclusive option to acquire a 100% interest in the Curie Lake and Root Lake West properties. The staked and optioned claims combine for a total of 76,511 hectares and are referred to as Kenorland's South Uchi Project.
About the South Uchi Project
The project covers a portion of Confederation Assemblage volcanic rocks, as well as the boundary between the volcanic-dominated Uchi subprovince to the north and the sedimentary-dominated English River subprovince to the south. Multiple major east-west striking shear zones associated with the subprovince boundary transect the Project along its 90km strike length. Deformation associated with these structures has resulted in zones of strong shearing, alteration and complex folded geometries of the metavolcanic-clastic metasedimentary-iron formation stratigraphy, which are favourable settings for orogenic gold mineralization.
In addition to the gold prospectivity, the project meets many of the criteria for potential lithium pegmatite deposits, including the presence of the large Alison Lake batholith (a fertile peraluminous granite), which is partly covered by the project. Numerous lithium pegmatite occurrences are located in the region, including the McCombe deposit (Ardiden Ltd.) located immediately to the east of the project.
"The South Uchi Project is an excellent addition to our pipeline of greenfields exploration assets," said Zach Flood , President and CEO of Kenorland.
"The project meets all of the criteria we look for, including an extensive amount of prospective geology concealed by glacial till, vastly under-explored, and favourable access and infrastructure. Our plan is to carry out a large-scale systematic geochemical survey over the entire property this summer. This approach has worked very well for us in Quebec and we will apply a similar methodology here in the Birch-Uchi belt."
In order to exercise the option, Kenorland will make aggregate cash payments of $175,000 and issue common shares with an aggregate value of $175,000 over a two-year period from the date of the option agreement. Upon the exercise of the option, Kenorland will also grant the optionor a 2 per cent net smelter return royalty on the property, of which ½ (1 per cent) may be purchased by Kenorland at any time for an aggregate payment of $1,000,000 which may be paid in cash or through the issuance of common shares of Kenorland, at the discretion of the optionor.
All common shares issued by Kenorland will have a deemed issuance price equivalent to the 20 day volume-weighted average trading price of Kenorland's shares, subject to a floor price of $0.70 per share. The shares will also be subject to a four-month and one-day resale restriction from the date of their issuance.
The option agreement is subject to the approval of the TSX Venture Exchange.
Kenorland Minerals Ltd. (KLD) is a mineral exploration company based in Vancouver, British Columbia.
Kenorland Minerals Ltd. (KLD) is up 1.14 per cent, trading at C$0.89 per share at 9:45 am ET.