- Kenorland Minerals Ltd. (KLD) signs an option agreement with Double O Seven Resources Ltd. to acquire a 100 per cent interest in the Separation Project
- Double O has made an initial $100,000 payment to Kenorland
- Double O can earn up to a 100 per cent interest by paying $1.5 million to Kenorland by the fifth anniversary of the agreement
- Kenorland will retain a net smelter returns royalty of 2.5 per cent
- Kenorland Minerals Ltd. (KLD) is unchanged trading at $0.76 per share as of 3:13 p.m. ET
Kenorland Minerals (KLD) has announced an option agreement with Double O Seven Resources.
The option agreement allows Double O Seven Resources to acquire a 100 per cent interest in the Separation Project, located in Ontario.
Double O has made an initial $100,000 payment to Kenorland. Double O can earn up to a 100 per cent interest in the project by making aggregate payments of $1.5 million by the fifth anniversary of the option agreement.
Double O will make annual payments to Kenorland on the agreement anniversary dates under the following schedule:
- $150,000 at the first anniversary
- $200,000 at the second anniversary
- $250,000 at the third anniversary
- $300,000 at the fourth anniversary
- $500,000 at the fifth anniversary
Once the agreement is complete, Kenorland will retain a 2.5 per cent net smelter return royalty. For an initial two-year term, Kenorland will remain operator of the project and receive a 10 per cent management fee.
The Separation Lithium Project covers approximately 80 kilometres of the contact between the English River and Winnipeg River geologic sub-provinces.
This sub-province boundary is spatially associated with the Tanco lithium-cesium-tantalum deposit in Manitoba, as well as the Big Whopper Li pegmatite in the Separation Rapids area.
The nearby presence of these two significant deposits suggests that the entire domain contact is prospective for additional lithium mineralization.
Kenorland Minerals Ltd. (KLD) is unchanged trading at $0.76 per share as of 3:13 p.m. ET.