Kenorland Minerals Exercises Top-Up Rights with Sumitomo and Centerra
News related to:Kenorland Minerals Ltd · 1 min read
Kenorland Minerals Ltd., a well-financed mineral exploration company based in Vancouver, British Columbia, has announced that Sumitomo Metal Mining Canada Ltd. and Centerra Gold Inc. have exercised their 'top-up right' under their respective investor rights agreements. This move will result in the issuance of 45,794 common shares of the company.
Under the investor rights agreement dated November 3, 2021 (the "Sumitomo IRA"), Sumitomo Metal Mining Canada Ltd. will receive 23,126 common shares at a price of $2.498 per share, for a total consideration of $57,893.41. This issuance is aimed at retaining Sumitomo's 10.1% interest in the company. Similarly, under the investor rights agreement dated May 28, 2024 (the "Centerra IRA"), Centerra Gold Inc. will receive 22,668 common shares at the same price, for a total consideration of $56,500. This issuance will help Centerra maintain its 9.9% interest in the company.
The issuance of these shares is subject to the approval of the TSX Venture Exchange. The transactions are part of ongoing efforts to maintain the interests of key stakeholders in the company. Kenorland Minerals Ltd. is focused on project generation and early-stage exploration in North America, with a particular emphasis on the Frotet Project in Quebec. This project, co-owned by Kenorland and Sumitomo Metal Mining Canada Ltd., hosts the Regnault gold system, which contains an Inferred Mineral Resource of 14.5 Mt at 5.47 g/t Au, equating to 2.55 Moz of gold.
The Frotet Project is a significant greenfields discovery made by Kenorland and Sumitomo Metal Mining Canada Ltd. in 2020. The project is part of Kenorland's exploration strategy to advance greenfields projects through systematic, property-wide, phased exploration surveys financed primarily through exploration partnerships including option to joint venture agreements. Kenorland holds a 4% net smelter return royalty on the Frotet Project, which is owned by Sumitomo Metal Mining Canada Ltd.