Yorbeau Resources is pleased to announce that it has signed a non-binding letter of intent ("LOI") with Kinross Gold Corporation, whereby Kinross has the option to acquire a 100% interest in Yorbeau's Rouyn property ("Property") in Quebec, Canada.
The LOI outlines mutually acceptable terms for a definitive option agreement under which, subject to certain conditions, Kinross would over a 4-year period make certain exploration expenditures towards an option to purchase a 100% interest in the Property.
In order to earn the purchase option, Kinross must complete a resource estimationi for the Property after funding C$12 million dollars of exploration expenditures, including a firm commitment to spend C$3 million in the first 18 months including no less than 12,500 meters of diamond drilling.
Kinross will be the operator and project manager of the Property during the option period with Yorbeau to have representation on a Technical Committee which will oversee the work program.
Upon completion of the resource estimate, Kinross will have the option to acquire a 100% interest in the Property for a single cash payment consisting of (i) USD $25,000,000, plus (ii) 2% of the prevailing gold priceii multiplied by the number of ounces of gold in measured, indicated and inferred resources identified by Kinrossiii.
In addition to the cash payment, Yorbeau will retain a 2% NSR on any gold ounces produced in excess of the number of ounces identified by Kinross in the resource estimate and on any other minerals produced from the Property.
The Company is also pleased to announce that Kinross has committed to participate in a $1 million private placement of units in the Company upon signing the definitive option agreement.
Company president Gérald Riverin stated: "Company management is highly enthusiastic to partner with Kinross to advance the Rouyn project with the intention of realizing value for all project stakeholders.
"Signing the letter of intent marks a significant milestone for Yorbeau and the Rouyn project and we are looking forward to working with Kinross to finalize the definitive option agreement and continue work on the project."