Business
Kenorland Minerals Converts 20% Joint Venture Interest in Frotet Project to 4.0% NSR Royalty
Vancouver, British Columbia--(Newsfile Corp. - January 16, 2024) - Kenorland Minerals Ltd. ( TS...
About this update from Kenorland Minerals Ltd.
[{"type":"text","content":"Kenorland Minerals Converts 20% Joint Venture Interest in Frotet Project to 4.0% NSR RoyaltyVancouver, British Columbia--(Newsfile Corp. - January 16, 2024) - Kenorland Minerals Ltd. (TSXV: KLD) (OTCQX: KLDCF) (FSE: 3WQ0) (\"Kenorland\" or the \"Company\") is pleased to announce that it has entered into a definitive agreement dated January 15, 2024 (the \"Agreement\") with Sumitomo Metal Mining Canada Ltd. (\"Sumitomo\") to exchange the Company's 20% participating interest in the Frotet Project (the \"Project\"), located in Quebec, for a 4.0% net smelter return royalty (the \"Frotet Royalty\") on all minerals extracted from the Project. The transaction results in Sumitomo consolidating 100% ownership of the Project and termination of the joint venture agreement dated April 17, 2018 between Kenorland and Sumitomo.Zach Flood, President and CEO of Kenorland commented, \"Today marks the beginning of an exciting new chapter as we exchange our participating project interest for a substantial royalty interest covering the Frotet Project. This includes the high-grade Regnault gold discovery, which has been steadily advancing under our joint venture with Sumitomo over the past year. This strategic transaction is poised to deliver long term value for our shareholders and allows Kenorland to allocate its capital towards generating new discoveries elsewhere while preserving substantial upside in the Frotet Project and the Regnault gold discovery. Meanwhile, under consolidated ownership, Sumitomo can advance the development of the Project utilizing the resources of a larger mining company. We look forward to continuing our involvement in the Project as we transition operatorship over the next year.\" Transaction HighlightsExchange of Kenorland's 20% participating interest in the Frotet Joint Venture for a 4% net smelter return royalty covering the 39,365 hectare property.The Frotet Royalty is subject to the following buy down rights in favour of Sumitomo:A 0.25% royalty interest may be purchased for a C$3,000,000 cash payment to the Company within five (5) years of the grant of the Frotet Royalty upon the closing of the transaction.A 0.50% royalty interest may be purchased for a C$10,000,000 cash payment to the Company within ten (10) years of the grant of the Frotet Royalty upon the closing of the transaction, provided Sumitomo has exercise...