MONTREAL, Jan. 25, 2019 (GLOBE NEWSWIRE) -- Kintavar Exploration Inc. (the “Corporation” or “Kintavar”) (TSX-V: KTR) (FRANKFURT: 58V), is pleased to announce that the Corporation has entered into a letter of intent (“LOI”), with an arm’s length party, with respect to the acquisition by Monster Exploration the 100% interests in the Anik gold project (“Anik”) for $5 million in shares. Monster Exploration is the proposed spin-out (the “Spin-Out”) of TomaGold Corporation (TSX-V: LOT) of all its interests in the Monster Lake (joint venture with IAMGOLD – 50%) and Irene Lake exploration projects. It is expected that upon closing of the transaction, Kintavar will own approximately 14% of Monster Exploration. For full details, please refer to TomaGold press release from January 25, 2019.
Upon closing of the Spin-Out, the assets of Monster Exploration will be divided as follows:
- Monster Lake joint venture: 50% interest in the Monster Lake, Winchester and Lac à l’eau jaune properties (IAMGOLD 50%)
- 100% interest in six adjacent properties (Monster Lake East, Monster Lake West, Anik, Lac Doda, Irene Lake and Diego)
- 70% interest in the Hazeur property
As a result, the new consolidated Monster Lake sector will consist of 610 claims covering 311 square kilometres.
"As Kintavar continues to advance its flagship Mitchi stratiform copper project, the opportunity to sell the Anik gold property and to get exposure to the Monster Lake deposit, which has a high-grade inferred resource of 1,109,700 tonnes at 12.14 g/t Au, for 433,300 ounces of contained gold, brings enormous value to Kintavar shareholders. The combined assets of Monster Exploration consolidate a major land package in what is becoming Quebec’s most promising new gold district underpinned by the Monster Lake and Nelligan projects where IAMGOLD is conducting exploration.” comments Kiril Mugerman, President & CEO of Kintavar.
The Anik gold project is located 40 km southeast of the town of Chapais and 55 km to the south of the town of Chibougamau, in Québec. The project consists of 120 claims totalling 6,700 hectares.
Most of the project area can be accessed via the gravel road linking the former Joe Mann Mine to Route 167, a paved road connecting the Lac Saint-Jean region to Chibougamau. The nearby towns of Chapais, Chibougamau and Oujé-Bougoumou provide facilities and a workforce for exploration and mining development. The southeast claims block is crossed by a Hydro-Québec high-voltage power line.
Located in the Opawica-Guercheville deformation corridor, host to several gold mines and deposits, the eastern portion of the property is located less than 7 km from the Joe Mann mine and the Lac Meston and Philibert deposits. The western portion of the property is located less than 10 km to the south of the Monster Lake and Fancamp gold projects. In addition, the main gold zones of the Nelligan property, a joint venture between Vanstar Resources and IAMGOLD, are surrounded to the north, south and east by Anik property boundaries at a distance of less than 1,500 metres.
TomaGold and Kintavar have entered into a letter of intent whereby Monster Exploration will acquire 100% of Kintavar’s interest in and to Anik and the related assets and liabilities comprising Anik (the “Anik Transaction”), including: (i) the right of Société de Développement de la Baie James (“SDBJ”) to be granted a 0.1% net smelter return royalty affecting Anik, which may be purchased for C$125,000, the whole pursuant to the terms and conditions of a financing agreement entered into between Innord Inc., a subsidiary of Géomega Resources Inc., and SDBJ and (ii) the right of Administration Régionale Baie-James (“ARBJ”) to be granted a 0.1% net smelter return royalty affecting Anik, which may be purchased for C$125,000, the whole pursuant to the terms and conditions of a financing agreement entered into between Innord Inc. and ARBJ.
The consideration for the Anik Transaction will be $5,000,000, payable by the issuance to Kintavar of common shares of Monster Exploration, at a deemed price per share equal to the Financing price, at the closing of the Anik Transaction (the “Anik Consideration Shares”).
The Anik Consideration Shares will be issued to Kintavar pursuant to a prospectus exemption under Canadian securities laws and will be subject to a hold period of four month and a day in Canada.
The Anik Transaction is subject to certain conditions, including (i) the completion of the Financing and the Spin-Out before or concurrently with the Anik Transaction, (ii) the appointment of two directors of Monster Exploration by Kintavar and (iii) the approval of the TSXV. Kintavar has agreed to deal exclusively with TomaGold until June 30, 2019.
The Corporation announced that Kiril Mugerman, Kintavar’s President & Chief Executive Officer, will present at NobleConXV - Noble Capital Markets’ Fifteenth Annual Investor Conference at the W Hotel, Fort Lauderdale, Florida - on Monday January 28th at 11 am Eastern Standard Time.
A high-definition, video webcast of the presentation will be available the following day on the Company's website (www.kintavar.com), and as part of a complete catalog of presentations available at Noble Capital Markets’ Conference website: www.nobleconference.com and on the new investor portal created by Noble called Channelchek: www.channelchek.com. The webcast will be archived on the company's website, the NobleCon website and on Channelchek.com for 90 days following the event.
Alain Cayer, P.Geo., MSc., Vice-President Exploration of Kintavar, is Qualified Person under NI 43-101 guidelines who supervised and approved the preparation of the technical information in this news release.
About Kintavar Exploration & the Mitchi Property
Kintavar Exploration is a Canadian mineral exploration Corporation engaged in the acquisition, assessment, exploration and development of gold and base metal mineral properties. It’s flagship project is the Mitchi property (approx. 30,000 hectares, 100% owned) located west of the Mitchinamecus reservoir, 100 km north of the town of Mont-Laurier. The property covers an area of more than 300 km2 accessible by a network of logging and gravel roads with a hydro-electric power substation located 14 km to the east. The property is located in the north-western portion of the central metasedimentary belt of the Grenville geological province. Many gold, copper, silver and/or manganese mineralized showings have been identified to date, with many characteristics suggesting of a sediment-hosted stratiform copper type mineralization (SSC) in the Eastern portion of the property and Iron Oxide Copper Gold (IOCG) and skarn type mineralization in the Western portion. Osisko holds a 2% NSR on 27 claims of the southern portion of the Mitchi property, outside of the sedimentary basin.
About Noble Capital Markets, Inc.
2019 marks Noble Capital Markets’ 35th anniversary. The Company is an equity-research driven, full-service, investment & merchant banking boutique focused on emerging growth companies. In addition to NobleCon, Noble hosts numerous “non-deal” corporate road shows across the United States and Canada. In late 2018, Noble launched Channelchek.com which features advanced market data, institutional-quality research, balanced news, videos and podcasts covering more than 6,000 emerging growth companies. There is no cost for investors to join. Members: FINRA, SIPC, MSRB. www.noblecapitalmarkets.com
For further information contact:
|1||For more information, see the NI 43-101 technical report entitled “« Amended NI 43-101 Technical Report and Maiden Mineral Resource Estimate for the Monster Lake Project » and dated as of May 17, 2018 amends the Technical Report « NI 43-101 Technical Report and Maiden Mineral Resource Estimate for the Monster Lake Project » dated as of May 9, 2018 and filed on SEDAR under the profile of IAMGOLD Corporation.|
Forward looking Statements:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements that may constitute “forward-looking information” or “forward looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information and statements may include, among others, statements regarding future plans, costs, objectives or performance of the Corporation, or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” “target” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including additional closings of the private placement referred to above, or if any of them do so, what benefits the Corporation will derive. Forward-looking statements and information are based on information available at the time and/or management's good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control. These risks, uncertainties and assumptions include, but are not limited to, those described under “Risk Factors” in the Corporation’s management’s discussion and analysis for the fiscal year ended December 31, 2017, which is available on SEDAR at www.sedar.com; they could cause actual events or results to differ materially from those projected in any forward-looking statements. The Corporation does not intend, nor does the Corporation undertake any obligation, to update or revise any forward-looking information or statements contained in this news release to reflect subsequent information, events or circumstances or otherwise, except if required by applicable laws.
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