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Kenorland Minerals Options the O'Sullivan Project to Sumitomo Metal Mining Canada Ltd.
Vancouver, British Columbia--(Newsfile Corp. - December 15, 2022) - Kenorland Minerals Ltd. ( T...
About this update from Kenorland Minerals Ltd.
[{"type":"text","content":"Kenorland Minerals Options the O'Sullivan Project to Sumitomo Metal Mining Canada Ltd.Vancouver, British Columbia--(Newsfile Corp. - December 15, 2022) - Kenorland Minerals Ltd. (TSXV: KLD) (OTCQX: KLDCF) (FSE: 3WQ0) (\"Kenorland\" or \"the Company\") is pleased to announce that it has entered into a property option agreement (the \"Option Agreement\") with Sumitomo Metal Mining Canada Ltd. (\"Sumitomo\" or \"SMMCL\"), a wholly-owned subsidiary of Sumitomo Metal Mining Co. Ltd., pursuant to which the Company has agreed to grant to SMMCL the option to acquire up to a 70% interest in the O'Sullivan Project (the \"Project\"), located within the Abitibi greenstone Belt, of Northern Quebec. Figure 1. Location Map of the O'Sullivan ProjectTo view an enhanced version of Figure 1, please visit:https://images.newsfilecorp.com/files/6489/148090_e2462558b4ea2be3_001full.jpgOption AgreementPursuant to the Option Agreement, SMMCL can earn an initial 51% 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 (of which $1,200,000 are guaranteed expenditures within the first three years). Kenorland will act as operator of the Project in return for a management fee equal to 15% of the total expenditures during the first earn-in period. Following the earning of a 51% interest, SMMCL has the option to earn an additional 19% (for a total of 70% interest), 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% interest, Kenorland will have the option to forego a minority joint venture interest and immediately vest a net smelter returns royalty interest of 4% on the Property. In the event of joint venture participation, any party which dilutes to below a 10% interest will exchange its joint venture interest for a net smelter returns royalty of 3% (subject to a 1% buyback for $1,000,000). About the O'Sullivan ProjectThe 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 controls orogenic gold mineralisation in th...