Kenorland Minerals Ltd (TSX-V:KLD) has entered into a definitive purchase agreement with Jayden Resources Ltd to sell a 100% interest in its Wheatcroft project in Manitoba, the company announced.
As payment, Jayden will issue more than 5.5 million common shares and pay $125,000 in cash at closing to Kenorland, along with a 3% net smelter royalty. The deal is expected to close in the fourth quarter.
Kenorland will also have the right to receive additional shares of up to 9.9% of the total number of Jayden common shares, until Jayden has raised at least $10 million through future offerings.
READ: Kenorland Minerals arranges non-brokered private placement of 9,000,000 common shares for proceeds of $6.3M
The Wheatcroft project covers 97,501 hectares and 35 kilometers of strike length along the northern margin of the Kisseynew gneiss belt in northern Manitoba. Gneissic arkose sediments of the Sickle Suite overlie gneissic greywacke and mudstone of the Burntwood River Suite.
The geological setting is similar to the southern margin of the belt, where orogenic gold deposits such as Puffy Lake and Nokomis occur, the company said. The northern margin, though, remains under-explored.
The Geological Survey of Canada conducted regional till geochemical surveys in the area between 1983 and 1988, finding a significant coincident gold and arsenic in till anomaly.
A property-wide till geochemical survey operated by Kenorland will be carried out during the fall of 2022, including roughly 2,500 till samples.
Kenorland Minerals is focused on early to advanced stage exploration in North America. The company currently holds four projects in Quebec, where work is being completed under joint venture and earn-in agreement from third parties.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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