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Kapa Gold Provides Further Details on Option Agreement for BC Nickel Project
Vancouver, British Columbia--(Newsfile Corp. - March 6, 2023) - KAPA GOLD INC . (TSXV: KAPA) (" ...
About this update from Kapa Gold Inc
[{"type":"text","content":"Kapa Gold Provides Further Details on Option Agreement for BC Nickel ProjectVancouver, British Columbia--(Newsfile Corp. - March 6, 2023) - KAPA GOLD INC. (TSXV: KAPA) (\"Kapa\" or the \"Company\") is pleased to provide additional details on its recently signed option agreement (\"Option Agreement\") to acquire a 100% interest in the Mastodon Nickel Project (\"Mastodon\") a large, historic nickel project located in Southern BC.As previously reported on February 21, 2023, Kapa recently entered into the Option Agreement with Guy Delorme (\"Delorme\") to earn a 100% interest in Mastodon. Terms of the Option Agreement include the payment of an initial deposit of $25,000 due upon 30 days of signing, the issuance of 50,000 common shares and exploration expenditures of $150,000 in the first year. At the end of year one, a further 150,000 common shares are due and as well as a payment equal to 10% of all incurred exploration expenditures. In addition, the Company must make five further annual share issuances of 200,000 shares per year and cash payments equal to 10% of all exploration expenditures, capped at a maximum of $1 million. Additional terms include that upon a positive feasibility report being prepared, incorporating NI 43-101 and CIM standards, payment of either $1 million or 1 million shares is payable upon the election of Kapa. The Option Agreement grants a 3% NSR, with 1.5% payable to Delorme and 1.5% payable to Carlium Developments Inc (\"Carlium\") upon commencement of commercial production. Kapa has the right to purchase 0.5% of the NSR from each of or either Delorme and Carlium at any time upon an additional payment of $1 million. The Company has the further right to acquire an additional 0.5% from each or either of Delorme and Carlium within 12 months of commercial production with payment of an additional $1.5 million cash to each or either of Delorme and Carlium. The Option Agreement is subject to TSXV Exchange approval.Kapa has reviewed the historic documents and reports detailing exploration activities relating to the Mastodon project going back to the early 1900's. The Mastodon project covers 2,118 hectares on Castle Mountain just southeast of Christina Lake in Southern B.C., 18 kilometers from Grand Forks, and is easily accessible. Geologically the project covers a large portion of the Castle Mountain \"alpine type...