Yorbeau and Kinross Sign Letter of Intent for the Rouyn Property
MONTREAL, QUEBEC--(Marketwired - Jun 22, 2016) - Yorbeau Resources Inc.(TSX:YRB.A) (the "Company" or "Yorbeau") is pleased to announce that it has signed a non-binding letter of intent ("LOI") with Kinross Gold Corp. ("Kinross"), 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."
About Yorbeau Resources Inc.
The Company's 100% controlled Rouyn Property contains four known gold deposits in the 6-km-long Augmitto-Astoria corridor situated on the western half of the property. Two of the four deposits, Astoria and Augmitto, have substantial underground infrastructure and have been the focus of NI 43-101 technical reports that include resource estimates. The Company has recently expanded its exploration property portfolio by acquiring strategic base metal properties in prospective areas of the Abitibi Belt of Quebec and Ontario that also feature infrastructure favourable for mining development. The newly acquired base metal properties include Scott Lake which hosts important mineral resources, and Beschefer where, regionally, exploration interest has been increasing.
More information on the Company may be found on the Company's website at www.yorbeauresources.com.
Forward-looking statements: Except for statement of historical fact, all statements in this news release, without limitation, regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.
i The resource estimate to be completed according to Kinross' standard estimation and reporting practices subject to detailed technical parameters to be agreed between Kinross and Yorbeau in the definitive option agreement.
ii The price of gold for these purposes will be determined by the average London Bullion Market Association "initial" and "final" fixing prices for gold quoted in US dollars over the period of 30 trading days prior to the confirmation by Kinross of its completion of the required expenditures.
iii The number of ounces applied to the calculation of the payment to include those classified as measured, indicated or inferred resources (as such terms are defined by the Canadian Institute of Mining, Metallurgy and Petroleum in the most recent CIM Definition Standards for Mineral Resources and Mineral Reserves).
Contact
Gerald Riverin, Ph D., P. Geo
President
Yorbeau Resources Inc.
griverin@yorbeauresouces.com
819-279-1336
G. Bodnar Jr.
Director
Yorbeau Resources Inc.
gbodnar@yorbeauresources.com
514-384-2202
Toll free in North America: 1-855-384-2202