Mining News: News Nuggets: Kiska agrees to sell Whistler for C$1.6M
Kiska Metals Corp. July 21 reported the signing of a binding agreement to sell its Whistler copper-gold project to Brazil Resources Inc. Under the purchase agreement, Brazil Resources will issue Kiska 3.5 million shares in exchange for full ownership of Whistler, including the mining claims and other assets belonging to the project. Brazil Resources’ shares were trading at C46 cents per share on the Toronto Venture Exchange on July 21, making the deal worth roughly C$1.61 million. The Brazil Resources shares will be subject to resale restrictions providing for the release of 25 percent of the shares every five months after the closing of the deal. Additionally, Brazil Resources has agreed to pay Kiska C$10,000 a month to provide certain ongoing support and maintenance services in respect of the Whistler Project for 15 months following closing of the transaction. Kiska President Grant Ewing said, “This transaction greatly increases the company’s flexibility going forward. Kiska will no longer incur any holding or exploration costs, and it retains excellent carried participation in the future upside of the Whistler Project and other projects through its shareholding in BRI.” Whistler comprises 304 mining claims blanketing roughly 65 square miles of gold-copper prospective lands in Southcentral Alaska. The Whistler property is anchored by its namesake deposit, which was discovered by Cominco Alaska in the late 1980s and was further delineated by Kennecott Exploration, Geoinformatics Exploration Inc. and Kiska Metals. A total of 48 holes drilled into the Whistler deposit through 2011 has outlined an indicated resource of 79.2 million metric tons grading 0.51 grams per metric ton gold, 1.97 g/t silver and 0.17 percent copper (2.25 million gold-equivalent oz), and an inferred resource of 145.8 million metric tons averaging 0.40 g/t gold, 1.75 g/t silver and 0.15 percent copper (3.35 million gold-equivalent oz). Though this deposit is NI 43-101-compliant, Brazil Resources is historical in nature and will need to be updated with today’s metal prices and other consideration to be considered current. Roughly 20 other prospects and deposits have been identified on the property, including the Whistler orbit, Island Mountain and Muddy Creek prospects. The project also comes with an all-season runway and a 50-person exploration camp that includes 38 kW diesel generator, water well, septic system and fuel storage facility. “We are pleased to have reached an agreement to acquire this emerging gold-copper district in a stable mining jurisdiction with several porphyry deposits and prospects identified in the area to date,” said Brazil Resources CEO Garnet Dawson. “The company is dedicated first and foremost to our high-potential gold development projects in Brazil. However, with the Whistler Project, at a cost of just 4.5 percent dilution, we have an agreement to acquire another project with a historic multi-million ounce resource, large expansion potential, relatively low holding cost and the support of Kiska’s superior technical team, which is also in joint ventures with First Quantum Minerals Ltd. and Teck Resources Ltd.”
- Shane Lasley
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