Kenorland Minerals Ltd (CVE:KLD) (FRA:3WQ0) (FRA:3WQ0) has entered into an agreement with Superior Nickel Inc to sell its 100% interest in the Fox River property in Manitoba to Superior.
As consideration for the property located in the Fox River Belt, Kenorland said Superior will issue it 2,665,000 common shares and grant Kenorland a 2% net smelter return royalty.
"This transaction represents one of the ways Kenorland is able to create shareholder value and upside through its generative efforts, which does not require significant capital expenditures through direct exploration on the ground,” said Kenorland CEO Zach Flood in a statement.
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“We are very excited to see what Superior Nickel will discover in the Fox River Belt, a vastly under-explored, yet highly prospective geologic feature within the Circum-Superior Belt," Flood added.
The company said the Fox River Belt forms a portion of the Circum-Superior Belt in Northern Manitoba, which is analogous to Manitoba's world-class Thompson Nickel Belt (TNB) and the Cape Smith Belt (CSB) of Northern Quebec, host of the Ragland Nickel sulfide (NiS) deposits.
Similar to the TNB and CSB, the belt is composed of sedimentary rocks intercalated with thick sequences of komatiitic basalts, and associated ultramafic intrusive rocks, which formed along the margin of the Superior Craton during the Paleoproterozoic.
Kenorland said it has applied a two-pronged approach to nickel targeting utilizing continental-scale area selection coupled with high resolution geophysical direct detection of massive sulfide bodies to identify drill-ready targets.
This approach has led to the acquisition of Kenorland's FRB and Thompson South nickel projects. Kenorland's tenure in the FRB consists of three 5,000 hectare mineral exploration licenses -- named the T-Bone, Vector, and Feeder Zones.
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