Kivalliq Receives CDN$600,000 Royalty Payment from Sandstorm and Exercises Option to Earn 100% Project Interest in Baffin Gold Property
Kivalliq Receives CDN$600,000 Royalty Payment from Sandstorm and Exercises Option to Earn 100%
Project Interest in Baffin Gold Property
March 27, 2018
Vancouver, British Columbia – Kivalliq Energy Corporation (TSX-V:KIV) (“Kivalliq”) today announced,
pursuant to an agreement signed on March 27, 2018, receipt of a CDN$600,000 payment from
Sandstorm Gold Ltd. (“Sandstorm”) in return for Kivalliq granting to Sandstorm up to a 1.75% net
smelter returns (“NSR”) royalty payable on all future mineral production from Kivalliq's Baffin Gold
Property, located in Nunavut Territory, Canada. At any time up and until 36 months after signing the
agreement, Kivalliq may reduce the Royalty to a 1.0% NSR by making a CAD$1.0 million payment to
Sandstorm. Net proceeds will be used to fund exploration and property costs at Kivalliq’s projects in
Canada, as well as for general corporate purposes.
Kivalliq also announced that the Company has exercised the Option to earn a 100% project interest on a
portion of the Baffin Gold Property from Commander Resources Ltd. (“Commander”), as described in a
news release May 8, 2017, by issuing a final 250,000 Kivalliq shares to Commander.
Kivalliq's Chairman & CEO, Jim Paterson, stated: “With the exercise of our Option on a portion of the
Baffin Gold Property, Kivalliq now controls a district-scale land package covering highly prospective gold
targets along 140 km of strike length. We welcome and sincerely appreciate Sandstorm's continued
support of Kivalliq based on the merits of our team and project portfolio in Nunavut Territory.”
Baffin Gold Property
The Baffin Gold Property is a district-scale land package covering an entire Proterozoic gold belt having
geological and structural similarities to multi-million ounce gold mines in the north (i.e. Meadowbank
and Lupin) as well as the prolific Homestake Mine in South Dakota. Previous exploration has identified
numerous prospects along 140 km of strike length, with high-grade gold occurring in multiple settings:
silicate and sulphide iron formation; shear zones and quartz veins hosted in granodiorite, metavolcanics
and metasediments. An existing camp, tidewater access and two 1,200 m airstrips (North Warning
System, formerly DEW Line site) will help to accelerate future work programs and potential
development.
Kivalliq’s 100% owned Baffin Gold Property is comprised of consolidated mineral tenure approximately
230 km southwest of the community of Clyde River on Baffin Island, in the Qikiqtani region of Nunavut.
This property comprises fifteen prospecting permits, six crown mineral claims and three Inuit Owned
Land parcels subject to MEA’s with NTI.
About Kivalliq Energy Corporation
Kivalliq Energy Corporation (TSX-V: KIV) is a Vancouver-based company with a portfolio of high-quality
uranium and precious metal exploration projects in Canada. In addition to the new Baffin Gold Property,
Kivalliq holds Canada’s highest-grade uranium resource outside of Saskatchewan. The Company’s
flagship project, the 89,852 hectare Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a
NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds
U3O8. Kivalliq’s comprehensive exploration programs continue to demonstrate the “District Scale”
potential of the Angilak Property. For disclosure related to the inferred resource for the Lac 50 Trend
uranium deposits, please refer to Kivalliq’s news release of March 1, 2013.
In Saskatchewan, Kivalliq holds a 100% interest in the 13,711 hectare Hatchet Lake Property adjacent to
the north-eastern margin of the highly prolific uranium-producing Athabasca Basin. Compilation of
results from previous exploration by Hathor Exploration Limited and Rio Tinto have identified multiple,
priority unconformity-related basement targets at Hatchet Lake that were followed up in 2015.
Kivalliq also holds a 50% interest in the 131,412 hectare Genesis Property located northeast of
Saskatchewan’s Athabasca Basin, with Roughrider Exploration Limited funding the current exploration
program pursuant to an option to acquire up to an 85% interest in the property. This highly prospective
project is located along the Wollaston-Mudjatik trend and extends 90 kilometres northeast from
Wollaston Lake to the Manitoba border.
Kivalliq’s team of northern exploration specialists has forged strong relationships with sophisticated
resource sector investors and partner Nunavut Tunngavik Inc. (NTI) on both the Angilak and Baffin Gold
Properties. Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on
Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while
adhering to high levels of environmental and safety standards and proactive local community
engagement.
On behalf of the Board of Directors
"Jim Paterson"
James R. Paterson, Chairman and CEO
Kivalliq Energy Corporation
For further information about, Kivalliq Energy Corporation or this news release, please visit our website
at www.kivalliqenergy.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or
by email at [email protected] .
Kivalliq Energy Corporation is a member of the Discovery Group of Companies, for more information
please visit www.discoverygroup.ca .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain disclosures in this release constitute forward-looking statements that are subject to numerous
risks, uncertainties and other factors relating to Kivalliq's operations as a mineral exploration company
that may cause future results to differ materially from those expressed or implied in such forward-
looking statements, including risks as to the completion of the plans and projects. Readers are cautioned
not to place undue reliance on forward-looking statements. Other than as required by applicable
securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future events, or otherwise.