Kiska Metals Corporation: Completes Sale of Non-Core Midlothian Project
02.03.2016 | Marketwire
VANCOUVER, March 02, 2016 - Kiska Metals Corp. ("Kiska" or the "Company") is pleased to announce that it has entered into an agreement ("Agreement") to sell its non-core Midlothian Project ("Property") to Canadian Gold Miner Corp. ("CGM"), a subsidiary of Transition Metals Corp. ("XTM").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 Corp., a Qualified Person as defined by National Instrument 43-101.
About Kiska Metals Corporation
Kiska Metals Corp. is a prospect generator company with a high quality portfolio of gold and copper projects throughout North America. Two of Kiska's projects are held under option agreements with major mining companies. Kiska has several other gold and copper projects available for option-joint venture as well as an extensive royalty portfolio.
On behalf of Kiska Metals Corporation
"Grant Ewing"
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.
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Kiska Metals Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Kiska's expectations are the risks detailed herein and from time to time in the filings made by Kiska Metals Corp. with securities regulators. Those filings can be found on the Internet at http://www.sedar.com.
Contact
Kiska Metals Corporation
Grant Ewing, President & CEO
TEL: 604.669.6660