St-Georges unit to acquire option for Hemlo North Limb
ST-GEORGES PLATINUM and Base Metals Ltd.’s newly formed subsidiary, Kings of the North Corp., plans to option or farm-in the Hemlo North Limb project.
The company has entered into a letter of intent with Canadian Orebodies in order to option or farm-in the company’s Hemlo North Limb property, which is approximately 17 kilometres northeast of the Hemlo gold mine in Ontario’s Marathon district. It covers approximately 7,008 hectares. A National Instrument 43-101 technical report was completed in December, 2016.
Kings of the North’s interest in the project is driven by the similarity of formations within the project boundaries and at the nearby Hemlo mine. These porphyry bodies contain gold within and adjacent to the property boundaries of the Hemlo North Limb property. In addition, multiple gold and precious metal targets occur within banded-iron formation and volcanic-hosted massive sulphides. The company believes the multitude of gold and base-metal targets generated by past work coupled with geophysical anomalies and historic drilling have de-risked the next phase of exploration.
Kings of the North intends to complete a reconnaissance program in the spring before prioritizing its drilling program in summer 2018.
Kings of the North’s president, Mark Billings, said: “Kings of the North Corp. is very pleased to have entered into this agreement with Canadian Orebodies. We are excited about working with Canadian Orebodies to explore and develop the Hemlo North Limb gold property. This transaction represents a major step of our acquisition and development strategy for KOTN.”
Terms of the transaction
The LOI describes the terms and the con di tions t hat should lead to a formal agreement. The parties agree that the definitive agreement will not be entered into until KOTN can demonstrate that it has raised at least $3-million in equity financing.
In order to acquire an initial 50-per-cent interest in the Hemlo North Limb property, KOTN agrees to:
• Pay to Canadian Orebodies a $50,000 cash deposit, on or before Dec. 31, 2017;
• Upon execution of the definitive agreement, issue to Canadian Orebodies a $350,000-principal-amount secured convertible note bearing interest at a rate of 15 per cent per annum, calculated monthly but payable on maturity.
• Incur or cause to be incurred exploration expenditures of $2-million on the properties before Dec. 31, 2018.
In order to acquire an additional 25-per-cent interest in the Hemlo North Limb property (for a total of 75 per cent), KOTN agrees to:
• Issue to Canadian Orebodies a $650,000-principal-amount secured convertible note bearing interest at a rate of 15 per cent per annum, calculated monthly but payable on maturity.
• Incur or cause to be incurred an additional $2-million in exploration expenditures on the properties and provide a National Instrument 43-101 technical report before Dec. 31, 2019.
In order to acquire an additional 10-per-cent interest in the Hemlo North Limb property (for a total of 85 per cent), KOTN agrees to deliver a positive prefeasibility study (with going-forward recommendations) on the project before Dec. 31, 2021.
Canadian Orebodies buyback option
Canadian Orebodies has the option to buy back up to a 25-per-cent interest in the properties by making the following payments to the purchaser:
• $1-million and
• 300 per cent multiplied by (the qualified expenditures incurred by the purchaser, as well as any amounts incurred in relation to the production of a technical report and/or a prefeasibility study) multiplied by (per cent interest to be bought back by the vendor).
Kings of the North and Canadian Orebodies shall provide additional information in regards to the contemplated transaction and its progress in the coming weeks.
Karen Baxter condensed this news release (firstname.lastname@example.org).
Mark Anthony Billings, Enrico Di Cesare, Herbert Duerr, Francois Dumas, Gary Johnson, Wei-Tek Tsai, Vilhjalmur Thor Vilhjalmsson
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