A total of C$4 million in exploration expenditures and C$400,000 in cash payments must be incurred and made over a four-year period for Centerra to earn a 70% interest
Kootenay Resources signs option agreement to grant Centerra Gold Inc. interest in The Copley Property in British Columbia, Canada. (Credit: PublicDomainPictures from Pixabay)
Kootenay Resources Inc. (the “Company” or “Kootenay”) is pleased to announce the signing of an option agreement with a wholly owned subsidiary of Centerra Gold Inc. (“Centerra”TSX: CG and NYSE: CGAU), whereby Centerra is granted an option to earn a 70% interest in the Copley property located in the Nechako Plateau of Central British Columbia.
A total of C$4 million in exploration expenditures and C$400,000 in cash payments must be incurred and made over a four-year period for Centerra to earn a 70% interest. The first year requires a work expenditure with a minimum commitment of $250,000. Upon the fulfillment of these conditions, the two companies will enter a standard joint venture agreement with Kootenay retaining a 30% interest, and funding of further work will be done on a pro rata basis amongst the joint venture partners.
James McDonald President and CEO of Kootenay Resources states “We are very pleased to have signed an agreement with major gold producer Centerra Gold Inc. We look forward to benefiting from Centerra’s expertise and consider their participation via the option agreement a reflection of our belief that the Copley property has the potential for the discovery of million ounce gold deposits.”
The Copley property is host to a large area of gold mineralization along a 6.5 km long trend. Key features include:
- Potential to host a Blackwater-type deposit
- 6.5×1.5 km EW belt of late-Cretaceous(?) rhyolitic flow domes and diatreme rocks
- Large zones of argillic, silicic, and sulphidic alteration related to magnetic-lows
- Surface grab samples and channel samples with multigram Au associated with high Mo, As, Sb, Hg, Ba, Zn, Pb, Cu
- Drilling in 2010/2011 at Smoking Pipe intersected 9.27 g/t Au over 2 m with several broad lower grade intervals such as 1.5 g/t Au over 11 m, 0.87 g/t Au. Over 11.87 m and 0.27 g/t Au over 33 m.
Financing
Additionally, the Company announces the closing of its previously announced non-brokered private placement of 7,050,000 flow through shares at a price of $0.05 per share, raising aggregate gross proceeds of $352,500. Proceeds received from the private placement will be used for the development of the company’s resource properties and general working capital requirements.
The private placement is subject to certain conditions including, but not limited to, the receipt of all necessary approvals. The shares to be issued under the Offering will have a hold period of four months and one day from Closing.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
Source: Company Press Release