Business
K2 Gold Options Flume Property and Stakes Further 7,000Ha in Ten Mile River District, Yukon
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2017) - K2 Gold Corporation ("K2" or the "Company") (TSX VENTURE:KTO) is pleased to announce that it has en
About this update from K2 Gold Corporation
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2017) - K2 Gold Corporation (\"K2\" or the \"Company\") (TSX VENTURE:KTO) is pleased to announce that it has entered into an agreement with Commander Resources Ltd., (\"Commander\") to acquire 100% of the 3,680 Ha Flume property in the historical Ten Mile River gold District, 70km south west of Dawson City. K2 has also just completed a staking program of approximately 7,000 Ha to the west and north of the Flume property that covers potential extensions of the regional structures associated with the mineralization at the Flume North and Flume South targets. \"Optioning the Flume property is consistent with the Company's strategy of being primarily focused on the search for gold in North America and specifically the Yukon Territory,\" stated Stephen Swatton, President and CEO of K2 Gold. \"Commander's 30km2 property is close to White Gold's Dime property that has high grade gold values in soils and was partially drilled in 2010 and 2011. The proposed option deal with Commander provides that most cash and share payments and are in the latter years of a 7 year exploration earn-in period.\" To earn 60% of the Commander property K2 must spend $2 million in exploration ($200,000 firm commitment in year one) and make staged cash and share payments as follows: Upon signing K2 will pay Commander $25,000 and 100,000 shares of K2 Year one anniversary - $35,000 and 100,000 shares Year two anniversary - $50,000 and 150,000 shares Year three anniversary - $75,000 and 150,000 shares Year four anniversary - $215,000 and 500,000 shares Upon fulfillment of the initial option conditions K2 will have the right to a further 40% (total 100%) in the property by making an additional $3 million in expenditures, making additional cash payments of $250,000, and issuing a further 2 million shares to Commander. If K2 has acquired 100% interest the property and announces a production decision it will pay Commander either $10 million in cash or $5 million cash and $5 million in shares of K2. The option is subject to certain customary conditions including without limitation to receipt of all necessary regulatory and third party approvals, including the approval of the TSX Venture Exchange (the \"TSXV\"). Originally staked by Phelps Dodge in 1999 the property has undergone approximately C$3.5 million of e...