Kodiak Copper Corp. (TSX-V:KDK) said it has entered into a purchase agreement with Donald Rippon of Mineworks Ventures Inc to acquire a 100% interest in 11 claims contiguous with Kodiak's 100%-owned MPD copper-gold porphyry project in Southern British Columbia.
The acquired property comprises 7,800 hectares (78 square kilometres) and will expand Kodiak's MPD project to 22,642 hectares (226 square kilometres). The new claims are adjacent to the southeast and host prospective geology and structural trends important to known mineralization at MPD.
In a statement, Claudia Tornquist, president and CEO of Kodiak, said: "Right from the start Kodiak has interpreted MPD as a large, multi-centred copper-gold porphyry system with district-scale potential and every step of our exploration work to date has confirmed this thesis.“
READ: Kodiak Copper reports more strong results from 2022 copper-gold porphyry drill program at BC project
“The addition of this claim package adds further strategic ground that complements our land holdings. The preparations for our 2023 exploration program at MPD are well advanced and I am looking forward to updating our shareholders soon with our plans for a large drill campaign on multiple targets,” she added.
The transaction consideration consists of:
- 150,000 Kodiak shares upon closing;
- A 2% net smelter returns royalty on the property of which 1% may be purchased by Kodiak for C$3,000,000 at any time; and
- A cash payment of C$5,000.
MPD is a large land package located near several operating mines in the southern Quesnel Terrane, British Columbia's primary copper-gold producing belt. It is situated between the communities of Merritt and Princeton, with year-round accessibility and excellent infrastructure nearby.
Following Kodiak's Gate Zone discovery in 2020, ongoing drill programs in 2021 and 2022 have significantly expanded the size and depth of known mineralization at the Gate Zone to one kilometre of strike length, 350 metres width and 900 metres depth. Most of the copper-gold porphyry targets on the MPD property have yet to be drilled by Kodiak. The 2023 exploration program will prioritize drilling of these additional high-priority copper-gold porphyry targets across the property.
Stock options granted
Kodiak also said it has granted 1,379,000 stock options to directors, officers and consultants of the company. The options are exercisable at C$0.96 per share for a period of five years from the date of grant with one-third vesting immediately and one-third every year thereafter.
Additional 20,000 options exercisable at C$0.96 per share were granted to a consultant of the company for a period of one year which will vest in four equal instalments over 12 months.
Kodiak is focused on its 100% owned copper porphyry projects in Canada and the USA. The porphyry projects have both been historically drilled and present known mineral discoveries with the potential to hold large-scale deposits.
Contact the author at jon.hopkins@proactiveinvestors.com