Mar 3 2016
Kiska Metals Corporation is pleased to announce that it has entered into an agreement to sell its non-core Midlothian Project to Canadian Gold Miner Corp., a subsidiary of Transition Metals Corp.
Under the terms of the Agreement, Kiska will assign to CGM, the Purchase and Sale Agreement, and the Royalty Agreement dated July 18, 2014 between Laurion Mineral Exploration Inc. and the Company, so that CGM may earn a 100% beneficial interest in and to the Property. As compensation, Kiska will receive the following:
- $100,000 worth of founder's shares in the capital stock of CGM upon execution;
- $200,000 worth of additional shares or units (as the case may be) in the capital stock of CGM upon the earlier of:
- The first anniversary of the Agreement, or;
- CGM completing a minimum $2M financing;
- A $2.5M milestone payment within 6 months of Commercial Production, payable in cash or shares at the election of CGM.
The additional CGM shares/units will be priced in accordance with the most recent financing activity of CGM, and Kiska will have the right to maintain its pro-rata ownership in future financings.
"This transaction provides Kiska shareholders with exposure to the value-creating ability of the XTM team -- a talented and proven Ontario exploration group focussed on exploring and consolidating prospective gold properties in the region," stated Grant Ewing, Kiska's CEO.
The Midlothian project is a road-accessible, high-grade, lode gold prospect located in Ontario's Abitibi Greenstone belt, 25 km west of the Young-Davidson gold mine. The property is transected by an under-explored segment of the Cadillac-Larder Lake Fault Zone (CLFZ), host to the prolific gold camps in Kirkland Lake, Rouyn-Noranda and Val-D'Or. Prospecting on the property in 2013 discovered the Bjorkman Zone, a 1 metre wide quartz-carbonate vein with visible gold that returned several high-grade rock chip samples, including a highlight result of 0.8 metres (true width) of 2,060 g/t gold (see August 7, 2013 news release for full suite of results). The Bjorkman Zone is located within the Bjorkman fault, an interpreted secondary fault structure connected to the CLFZ. A property-wide MMI soil survey conducted in 2015 highlighted extensions of the Bjorkman Zone under till cover, and other till-covered areas coincident with interpreted fault structures, as significant exploration targets.
The technical content of this document was reviewed and approved by Michael Roberts, Ph.D., P.Geo., Vice President of Exploration for Kiska Metals Corporation, a Qualified Person as defined by National Instrument 43-101.