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August 28, 2014 --- Vol. 08, No. 35August 2014

Alaska News Nuggets

COPPER/GOLD – Kiska Metals Corp. Aug. 27 reported that First Quantum Minerals Ltd. has entered into an agreement that will allow it to option the Copper Joe property in Southcentral Alaska. To secure the exclusive right to option the property, First Quantum has agreed to fund an initial 1,500-meter drill program that will begin in early September 2014 and be operated by Kiska. Additionally, Kiska will receive an initial cash payment of US$10,000 and annual cash payments of US$50,000 beginning on the first anniversary of the letter agreement. Following the program, First Quantum has until March 31, 2015 to notify Kiska of its intentions to enter an option to joint venture the Copper Joe project. First Quantum can earn an initial 51 percent interest in the Copper Joe Project by funding expenditures of US$5 million by Dec. 31, 2017. First Quantum's interest will increase to 80 percent when a decision to mine is made. Upon the decision to mine, First Quantum has the right to require Kiska to sell its remaining interest (20 percent) to First Quantum, and Kiska has the right to require First Quantum to purchase its interest in the joint venture, for a predetermined amount. Following the decision to mine, if Kiska’ remaining 20 percent interest has not been sold, First Quantum and Kiska will each be responsible for their proportionate share of the joint venture funding, provided that First Quantum will lend to Kiska its share of the joint venture funding costs. Kiska holds an exclusive right to acquire a 100 percent interest in the mining claims that comprise the Copper Joe Project from Kennecott Exploration Company pursuant to an option agreement which was amended to, among other things, permit the transfer of rights or interests of Kiska under the Copper Joe agreement to First Quantum. Kiska may exercise its option under the Copper Joe agreement to acquire a 100 percent interest in the Copper Joe Project upon the expenditure of US$5 million by Dec. 31, 2018. First Quantum’s initial earn-in would cover this expense, and upon the vesting of Kiska's interest, 51 percent of such interest will be transferred to First Quantum. Under the amended Copper Joe agreement with Kennecott, First Quantum would pay Kennecott US$10 million upon the completion of a pre-feasibility study, and US$5 million upon the announcement of a decision to mine. In addition to these milestone payments, Kennecott will retain a royalty on the Copper Joe project. “Kiska is very pleased to be able to restructure the Copper Joe agreement, and welcome First Quantum as a new partner on the project. The agreement provides Kiska with the opportunity to retain an important carried interest in the project, and is an excellent example of Kiska executing the prospect generator business model to create shareholder value,” said Kiska President Grant Ewing. Copper Joe is a copper-gold-molybdenum porphyry prospect located in the Alaska Range roughly 20 miles (30 kilometers) southwest of Kiska’s Whistler copper-gold project and about 110 miles (175 kilometers) northwest of Anchorage.

GRAPHITE/FINANCE – Graphite One Resources Inc. Aug. 27 reported the start of its 2014 exploration at the Graphite Creek deposit north of Nome, Alaska. The program includes infill drilling on roughly 50-meter centers, with the goal of converting a portion of the inferred resource (284.71 million metric tons grading 4.5 percent graphite) to either indicated or measured categories. The program will also involve the collection of mini-bulk samples from both surface and existing drill core. This will be used to continue to develop and implement bench-scale metallurgical testing. Spherical graphite is used to make the anodes in lithium-ion batteries and is manufactured from the flake concentrate produced by graphite mining operations. Natural graphite produced from mining typically has recoveries from 70 percent to plus 90 percent graphitic carbon, whereas synthetic graphite is usually greater than 99 percent. With initial tests from Graphite Creek concentrates being above 99 percent graphite, the company hopes to be positioned to compete in the US$13-billion (1.5 million metric tons annually) synthetic market. Graphite One President and CEO Anthony Huston said, “The Graphite Creek Deposit is one of the largest known deposits in the world and by far the largest Graphite Deposit in the United States. This comprehensive program will allow the company to achieve some great milestones towards advancing the deposit in the coming months as we look forward to adding significant value to our stakeholders.”

Additionally, Graphite One said it has closed a C$2 million non-brokered private placement with an additional C$1.5 million expected to close in September. Pursuant to this closing, the company issued 15,599,160 units at C13 cents per unit. Each unit consists of one common share and one non-transferable purchase warrant. Each warrant entitles the holder to purchase one additional common share at a price of C20 cents per share during the first two years from the date of issuance and at a price of C25 cents per share during years three and four from the date of issuance. Graphite One paid finders’ fees to date in the aggregate amount of C$120,887.26 and issued 929,902 non-transferrable share purchase warrants.


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