Kintavar Options Out Two Gold Properties in Quebec to Gitennes Exploration Inc.
June 29 2020 - 8:30AM
Kintavar Exploration Inc. (the “
Corporation” or
“
Kintavar”) (TSX-V: KTR) (FRANKFURT: 58V), is
pleased to announce that it has entered into two separate
agreements (the “
Agreements”) with Gitennes
Exploration Inc. (“
Gitennes”) (TSX-V: GIT) to
option out the Rivière-à-l’Aigle (“
RAL”) and the
New Mosher properties in Quebec.
Subject to acceptance for filing of the
Agreements by the TSX Venture Exchange ("TSX-V"), Gitennes may earn
up to an 85% interest in the RAL and New Mosher properties. To earn
the interests in the RAL and New Mosher properties, Gitennes will
make share and cash payments to Kintavar and incur certain
exploration expenditures as presented in the table below. In
connection with this transaction, Gitennes will complete a share
consolidation on a 10 pre-consolidation common shares for one
post-consolidation share. The number of shares presented in the
table are post-consolidation. Kintavar will remain the operator
until the 2nd portion of the option agreement is completed on or
before Sept 30, 2022.
Date for Completion |
RAL Property |
New Mosher Property |
Common Shares to be Issued * |
Min. Exploration Expenditures |
Common Shares to be Issued * |
Min. Exploration Expenditures |
TSX-V acceptance |
150,000 |
Nil |
150,000 |
Nil |
On or before Sept 30, 2021 |
250,000 |
$150,000 |
150,000 |
$150,000 |
On or before Sept 30, 2022 |
300,000 |
$250,000 |
150,000 |
$250,000 |
On or before Sept 30, 2023 |
300,000 |
$400,000 |
150,000 |
$300,000 |
On or before Sept 30, 2024 |
500,000 |
$700,000 |
400,000 |
$300,000 |
TOTAL |
1,500,000 |
$1,500,000 |
1,000,000 |
$1,000,000 |
* Common shares of Gitennes are post
consolidation shares and any shares issued in connection with the
exercise of the Option will be subject to a hold period of four
months and a day from the date of issuance.
The RAL and New Mosher properties are under
separate option agreements and the above share issuances and
exploration expenditures are mutually exclusive. Upon making the
above share issuances and exploration expenditures separately on
each property, Gitennes will earn a 70% interest in each property.
Gitennes can increase its interest to 85% on either property by
either producing an inferred resource or conducting a PEA by
September 30, 2025. Upon completion of an inferred resource
Gitennes will pay Kintavar $250,000 in cash or shares at Gitennes’
option and pay an additional $750,000 in cash only on delivering a
PEA. Gitennes will grant to Kintavar a 1.5% NSR on each property
and Kintavar will grant Gitennes the right to purchase at any time
1% for C$1.0 million.
“Kintavar continues to leverage its exploration
experience in Quebec and to gradually divest its non-core assets
while gaining exposure to gold exploration through those
transactions. We are very excited to work with Gitennes who
recognized Quebec as a mining-friendly jurisdiction and the gold
exploration potential in this province.” commented Kiril Mugerman,
President & CEO of Kintavar Exploration.
About Gitennes Exploration
Inc.
Gitennes is in the business of exploring for and
advancing mineral properties with a focus on high grade gold. The
Company currently has the high-grade gold Snowbird exploration
property in British Columbia and a 1% Net Smelter Return royalty on
the 18 million-ounce Urumalqui Silver Project in Peru.
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. Its 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. Kintavar also has exposure in the gold
greenstones of Quebec by advancing the Anik Gold Project in a
partnership with IAMGOLD.
For further information contact:
Kiril Mugerman, President and CEO Phone: +1 450 641 5119 #5653
Email: kmugerman@kintavar.com Web: www.kintavar.com
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, 2019, 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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