Canadian Shield Resources Ltd (TSX-V: EXP) said it has signed a letter of intent with Kinross Gold Corp (TSX: K; NYSE: KGC) to form an exploration alliance for Peru.
Kinross will fund US$500,000 in the generative program over a 12 month period and Canadian Shield will be the initial operator of the exploration programs.
Canadian Shield will provide local expertise and exclusive access to a proprietary database built by Gallant Minerals Peru Ltd SA, a private exploration company Canadian Shield acquired 90 percent of in 2004. The digitized database comprises a comprehensive compilation of both public and confidential information, and includes dozens of identified targets, many of which have yet to be field checked.
Canadian Shield and Kinross may form a joint venture in respect of any exploration project identified under the alliance and subsequently staked, optioned or acquired. Each JV will be initially owned 50 percent by Kinross and 50 percent by Canadian Shield. Kinross will have the option to earn an additional 25 percent participating interest in a project by spending a pre-determined amount over a two year period.