MAS Gold Corp (TSX-V:MAS, OTCQB:MSGCF). said it has entered a non-binding Memorandum of Understanding (MOU) with Kitsaki Management Limited Partnership in respect of MAS's exploration efforts in the La Ronge Gold Belt region.
The MOU establishes a basis for maintaining a cooperative and mutually beneficial relationship between MAS, Kitsaki, and its shareholder, which respects the rights and interests of the Lac La Ronge Indian Band and Kitsaki while supporting MAS's exploration and development activities.
"I am extremely pleased to have Kitsaki as part of our team in our effort in consolidating the gold play in the La Ronge Greenstone Belt area. I have known members of Kitsaki over my many years of business in Saskatchewan and I can say that having them on our team is a game changer for MAS. I am looking forward to working with Ron Hyggen and his team in our pursuit,” Jim Engdahl, MAS Gold's CEO said in a statement.
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Through the collaborative approach between the parties, MAS can work towards consent for its exploration and evaluation activities. Kitsaki has managed the economic development activities for the Lac La Ronge Indian Band since 1981, the company said.
Ron Hyggen, Kitsaki's CEO said: "This investment in MAS represents the beginning of a resource development partnership in the traditional territory of the Lac La Ronge Indian Band.”
“There are several economic development opportunities associated with resource development and represents the foundation of Kitsaki's long-term success. We look forward to working with the leadership team from MAS on their efforts to sustainably develop the resource-rich area in the La Ronge gold belt."
The MOU provides MAS will provide compensation in consideration for the services to be provided by Kitsaki which may be through the issuance of shares of MAS. Kitsaki will also invest $150,000 into MAS in the form of a convertible five-year note carrying a zero-interest coupon and be convertible into MAS common shares at maturity or cash at MAS's option.
MAS Gold is a Canadian mineral exploration company focused on advancing its gold exploration projects in the prospective La Ronge Gold Belt of Saskatchewan. It operates four properties in the belt, including the Preview-North, Greywacke Lake, Elizabeth Lake and Henry Lake Properties totaling 35,175.6 hectares.
Contact the author at jon.hopkins@proactiveinvestors.com