Renaissance Gold Inc. signs Letter of Intent with Kinross Gold U.S.A., Inc. for an option
To earn a 70% interest in three projects in Nevada and to complete a private placement in Renaissance SharesWhite Rock - Renaissance Gold Inc. (TSX.V: REN) (“Rengold” or the “Company”) is pleased to announce that they have signed a Letter of Intent (LOI) with Kinross Gold U.S.A., Inc. (“Kinross”). Subject to completion of due diligence and definitive documentation within 60 days, the option agreement would grant Kinross the option to acquire a 70% interest in the Spruce East, Diamond Point and Buffalo Canyon exploration projects located in Nevada within 10 years. The Spruce East and Diamond Point projects in Elko County were just acquired by RenGold (see press release NR2017-1) and Buffalo Canyon in Nye County is drill permit ready. Each project will be subject to a separate exploration earn-in agreement. Upon signing the definitive agreements Kinross will advance RenGold US$500,000 to carry out and conduct exploration for the first agreement year among the three projects as directed by Kinross. Subsequent years will have increasing minimum expenditures for each project of US$200k, then US$300k and finally US$500k per year through year 10 totaling US$4,000,000 to vest an undivided 70% interest in each project. Kinross may accelerate vesting by spending US$5,000,000 before the end of the seventh year.
Concurrent with execution of the definitive option agreements, Kinross will subscribe for such number of common shares in the capital of RenGold amounting to no less than 5% and not more than 9.9% of the issued and outstanding shares of RenGold at a price of C$0.33 per share. The private placement and any modification to it are subject to compliance with applicable securities laws and to receipt of regulatory approval. The proceeds from the private placement will be used by RenGold for general corporate purposes.
In addition, RenGold will grant to Kinross for a period of not more than three years a Right of First Refusal (ROFR) to acquire new projects developed by RenGold under arms-length terms in a defined area of Nevada. The ROFR can be used a maximum of three times within the three years of the agreement.
Ronald Parratt, President & CEO states “This agreement provides an excellent opportunity to accelerate the exploration of three properties in the RenGold portfolio. A total of 6 projects out of 15 are now in earn-in agreements with industry partners. It is anticipated that all three projects will see some drilling this year and, based on outcomes, aggressive follow-up may be warranted. We’re pleased with the confidence placed in RenGold by Kinross and it is a pleasure to add a company such as Kinross to our shareholder list. They will be the fourth major mining company to hold an interest in the Company.”
About Renaissance Gold Inc.
Renaissance Gold Inc. is a gold/silver exploration company that has a large portfolio of exploration projects in Nevada and Utah. RenGold’s objective is to place the projects in exploration earn-in agreements with industry partners who provide exploration funding. RenGold applies the extensive exploration experience and high-end technical skills of its founders and team members to search for and acquire new precious metal exploration projects that are then offered for joint venture.
By: Ronald Parratt, President and CEO
For further information, contact:
Ronald Parratt, 775-337-1545 or rparratt@rengold.com
Neither the 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 certain statements that may be deemed “forward-looking” statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although Renaissance Gold Inc. believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Renaissance Gold Inc.’s management on the date the statements are made. Except as required by law, Renaissance Gold Inc. undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.