Kiska to Sell Thorn Property to Brixton for $1.5 Million in Cash and 7 Million Shares
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/08/13 -- Kiska Metals Corporation (TSX VENTURE: KSK) ("Kiska" or "the Company") reports that the Company, has entered into a non-binding Letter Agreement dated January 7, 2013 to sell the Thorn Property to Brixton Metals Corporation for $1.5 million in cash (including $50,000 on execution of the LOI) and seven million shares of Brixton.
"With Brixton very close to fulfilling its exploration requirements for the 51% earn-in, this transaction simplifies the ownership of the Thorn Project while allowing Kiska to crystallize value in the project and yet maintain exposure to further exploration success by Brixton," stated Jason Weber, President and CEO of Kiska Metals. "We felt the opportunity to add cash to our treasury in a non-dilutive manner was prudent considering the market conditions junior explorers face today."
The transaction will be completed by way of a purchase and sale agreement ("SPA"). The completion of the Transaction will be subject to a number of conditions, including entering into the SPA, completion by Brixton of an equity financing to raise sufficient cash to finance the cash component of the consideration for the Transaction, approval of the SPA by Brixton and Kiska's respective boards and receipt of all required TSX Venture Exchange approvals. The transaction is scheduled to close by February 28, 2013 or such other date as mutually agreed to by parties. There can be no assurance that the transaction will be completed as proposed or at all.
The 189 square kilometre Thorn Property is located 120 kilometres northwest of Telegraph Creek, BC. Brixton signed an option agreement to earn a 51% interest in the Thorn by funding $5 million in exploration by the end of 2014 ($4.1 million spent to date). At Kiska's election, Brixton could fund an additional $10 million in exploration to earn an additional 14% interest (totaling 65%) in the property. Exploration is targeting high sulphidation epithermal vein-hosted high-grade copper-gold-silver mineralization and breccia-hosted high-grade silver and gold mineralization.
About Kiska Metals Corporation
Kiska Metals Corporation is a mineral exploration company focused on advancing the Whistler property, Alaska, a district-scale project with excellent exploration potential which includes the Whistler Deposit (a 2.25 M oz gold-equivalent indicated resource of 79.2 million tonnes averaging 0.51 g/t gold, 1.97 g/t silver and 0.17% copper and a 3.35 M oz. gold equivalent inferred resource of 145.8 million tonnes averaging 0.40 g/t gold, 1.75 g/t silver and 0.15% copper). Kiska has renowned technical expertise and a quality exploration portfolio with numerous early stage exploration opportunities around the world, some held in partnership with a selection of the world's largest and most successful gold and base metal producers.
On behalf of Kiska Metals Corporation
Jason Weber, P.Geo., President & CEO
CAUTIONARY STATEMENT: 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 Corporation with securities regulators. Those filings can be found on the Internet at http://www.sedar.com and http://www.sec.gov.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Contacts:
Kiska Metals Corporation
Candice Ridyard (Investor Relations) or Jason Weber
604.669.6660
604.669.0898 (FAX)
www.kiskametals.com