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.