Kootenay Resources Signs Option Agreement To Grant Centerra Gold Inc. Interest In The Copley Property In British Columbia, Canada
Kootenay Resources Signs Option Agreement
To Grant Centerra Gold Inc. Interest In The
Copley Property In British Columbia, Canada
VANCOUVER, BC
,
April 20, 2022
/CNW/ -
Kootenay Resources Inc. (the "Company"
or "Kootenay")
is pleased to announce the signing of an option agreement with a wholly owned
subsidiary of Centerra Gold Inc. ("Centerra" TSX: CG and NYSE: CGAU), whereby Centerra is
granted an option to earn a 70% interest in the Copley property located in the Nechako Plateau of
Central British Columbia
.
A total of
C$4 million
in exploration expenditures and
C$400,000
in cash payments must be incurred
and made over a four-year period for Centerra to earn a 70% interest. The first year requires a
work expenditure with a minimum commitment of
$250,000
. Upon the fulfillment of these conditions,
the two companies will enter a standard joint venture agreement with Kootenay retaining a 30%
interest, and funding of further work will be done on a pro rata basis amongst the joint venture
partners.
James McDonald President and CEO of Kootenay Resources states
"We are very pleased
to have signed an agreement with major gold producer Centerra Gold Inc. We look forward to
benefiting from Centerra's expertise and consider their participation via the option agreement a
reflection of our belief that the Copley property has the potential for the discovery of million ounce
gold deposits."
The Copley property is host to a large area of gold mineralization along a 6.5 km long trend. Key
features include:
Potential to host a Blackwater-type deposit
6.5x1.5 km EW belt of late-Cretaceous(?) rhyolitic flow domes and diatreme rocks
Large zones of argillic, silicic, and sulphidic alteration related to magnetic-lows
Surface grab samples and channel samples with multigram Au associated with high Mo, As,
Sb, Hg, Ba, Zn, Pb, Cu
Drilling in 2010/2011 at Smoking Pipe intersected 9.27 g/t Au over
2 m
with several broad
lower grade intervals such as 1.5 g/t Au over
11 m
, 0.87 g/t Au. Over
11.87 m
and 0.27 g/t Au
over
33 m
.
Financing
Additionally, the Company announces the closing of its previously announced non-brokered private
placement of 7,050,000 flow through shares at a price of
$0.05
per share, raising aggregate gross
proceeds of
$352,500
. Proceeds received from the private placement will be used for the
development of the company's resource properties and general working capital requirements.
The private placement is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals. The shares to be issued under the Offering will have a hold period of four
months and one day from Closing.
The securities described herein have not been, and will not be, registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and
accordingly, may not be offered or sold within
the United States
except in compliance with the
registration requirements of the U.S. Securities Act and applicable state securities requirements or
pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a
solicitation to buy any securities in any jurisdiction.
Qualified Persons
The Kootenay technical information in this news release has been prepared in accordance with the
Canadian regulatory requirements set out in National Instrument 43-101 (Standards of Disclosure for
Mineral Projects) and reviewed and approved on behalf of Kootenay by
James McDonald
, P.Geo,
President, CEO & Director for Kootenay, a Qualified Person.
About Kootenay Resources Inc.
KSR is an exploration company actively engaged in the exploration and discovery mineral projects
in
British Columbia, Canada
.
On behalf of the board of directors of the
Company
:
James McDonald
,
Director
No Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:
The information in this news release has been prepared as at
April 19, 2022
. Certain statements in
this news release, referred to herein as "forward-looking statements", constitute "forward-looking
statements" under the provisions of Canadian provincial securities laws. These statements can be
identified by the use of words such as "expected", "may", "will" or similar terms.
Forward-looking statements are necessarily based upon a number of factors and assumptions that,
while considered reasonable by Kootenay as of the date of such statements, are inherently subject
to significant business, economic and competitive uncertainties and contingencies. Many factors,
known and unknown, could cause actual results to be materially different from those expressed or
implied by such forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date made. Except as otherwise
required by law, Kootenay expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any such statements to reflect any change in Kootenay 's expectations
or any change in events, conditions or circumstances on which any such statement is based.
Cautionary Note to US Investors:
This news release may contain information about adjacent
properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's
mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S.
investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral
deposits on our properties. This news release may contain forward-looking statements including
but not limited to comments regarding the timing and content of upcoming work programs,
geological interpretations, receipt of property titles, potential mineral recovery processes, etc.
Forward-looking statements address future events and conditions and therefore involve inherent
risks and uncertainties. Actual results may differ materially from those currently anticipated in such
statements.
SOURCE
Kootenay Resources Inc.
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For further information:
James McDonald, Director at 403-880-6016; Raj Kang, Director at 604-
601-5650
CO: Kootenay Resources Inc.
CNW 09:30e 20-APR-22