Kria Resources (TSX-V:KIA) is set to gain a new major investor with an agreement with Cardero Resource Corp (TSX:CUD, AMX:CDY, FSE:CR5) which is set to invest C$1.5m into the company by way of a private placing.
Kria will issue 15m units, consisting of 1 share and 1 warrant, at a price of $0.10 per unit to Cardero. The company intends to use the proceeds to make property payments on its Halfmile Lake and Stratmat projects near Bathurst, New Brunswick, Canada. The company told investors that it would also use some of the proceeds to continue the ongoing development of its key projects, as well as general capital purposes.
When all warrants are exercised, Cardero will own 17.1% of the companys issued shares. Additionally, the new shares and warrants will be subject to a four month and one day statutory hold period.
Kria Resources is a base metal exploration and development company with advanced-stage base metal assets. The company's primary assets are the Halfmile Lake and Stratmat properties which it optioned from Xstrata (LON:XTA), which is currently the company's largest shareholder.
Halfmile Lake has a NI43-101 Indicated mineral resource of 6.26Mt grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 grams per tonne (g/t) silver, and an inferred resource estimate of 6.08Mt grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51g/t silver.
According to a July 2009 preliminary economic assessment (PEA), the property has an estimated pre-tax NPV (net present value) of C$587m with an IRR (internal rate of return) of over 16%. Furthermore, the PEA indicated the potential to create a combined Halfmile Lake/Stratmat project, which would improve the project's economics.
In March 2010, Kria hired Wardrop Engineering to conduct a new PEA for the combined Halfmile Lake and Stratmat deposits.
Elsewhere, Kria also owns the Ruttan copper-zinc sulphide project in Manitoba. The project has a NI43-101 inferred resource estimate of 19.75Mt grading 1.17% copper and 1.47% zinc.