Kesselrun Resources Acquires Huronian Gold Project
THUNDER BAY, ON, July 5, 2016 – Kesselrun Resources Ltd. (TSXV:KES) (“Kesselrun” or the “Company”) is pleased to announce that, subject to TSX Venture Exchange approval, the Company has entered into a purchase agreement to acquire a 100% interest in the Huronian Gold Project from Chalice Gold Mines Limited (“Chalice”) and its wholly owned subsidiary, Coventry Resources Ontario Inc., and Pele Mountain Resources Inc. (“Pele”) and its wholly-owned subsidiary, Pele Gold Corporation (the “Transaction”).
In consideration for the purchase, Kesselrun has agreed to issue Chalice 2,040,000 and Pele 1,960,000 common shares of Kesselrun for a total of 4,000,000 common shares. Following the Transaction Chalice and Pele will each hold approximately 5.5% of the issued and outstanding shares of Kesselrun.
Huronian Gold Project
The Huronian Gold Project consists of 153 unpatented mining claims and four patented mining claims for a total land package of 5,040 hectares. The project is situated in the highly prolific Shebandowan Greenstone Belt located in the Abitibi-Wawa Subprovince approximately 100 km west of Thunder Bay, Ontario along major transportation and power routes.
The project hosts numerous significant gold zones including the past producing Huronian Mine (also formerly known as the Jackfish, Kerry, Moss and Ardeen at various times) that produced 29,629 ounces gold and 170,463 ounces silver from 143,724 tons from 1932-1936 (Ontario Ministry of Northern Development and Mines Production Records). The project also covers the southwest strike extension of Wesdome Gold Mine’s Moss Lake Gold Deposit. The Moss Lake Gold Deposit hosts an NI 43-101 compliant resource estimate of 40 million tonnes at a grade of 1.1 g Au/tonne (1,377,300 oz Au) Indicated and an additional 50 million tonnes at a grade of 1.1 g Au/tonne (1,751,600 oz Au) Inferred (Moss Lake Gold Mines NR February 20, 2013). The project has been drilled in several campaigns between 1996 and 2010 completing over 20,000 metres of drilling in over 200 drillholes.
Michael Thompson, P. Geo., President and CEO of Kesselrun stated, “We are excited about this strategic acquisition. We believe the Huronian Gold Project holds tremendous potential and Kesselrun plans on advancing the project aggressively in the coming months.”
Chalice and Pele have also been granted certain Net Smelter Return royalties (“NSR”) over certain mining claims. In combination with pre-existing NSRs, the property will be subject to a 2.5% NSR over certain mining claims and a 2% NSR on the remaining mining claims. Half of the all pre-existing NSRs are subject to certain buyback clauses for various percentages and dollar amounts.
All securities issued above are subject to a hold period of 4 months and one day from the date of completion and further provisions restricting the sales of shares to not more than approximately one tenth of the total per month over the following ten months except where the sale is in a single block to a purchaser acceptable to Kesselrun.
Michael Thompson, P. Geo., President and CEO of Kesselrun, is the Qualified Person for Kesselrun as defined by National Instrument 43-101 and has approved the technical information in this news release.
About Kesselrun Resources Ltd.
Kesselrun Resources is a Thunder Bay, Ontario-based mineral exploration company focused on growth through property acquisitions and discoveries. Kesselrun's management team possesses strong geological and exploration expertise with particular experience in Northwest Ontario. For more information about Kesselrun Resources, please visit www.kesselrunresources.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For additional information please contact:
Kesselrun Resources Ltd.
Michael Thompson, P. Geo.,
Forward Looking Statements – Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Kesselrun, including, but not limited to, the impact of general economic conditions, industry conditions, volatility of commodity prices, dependence upon regulatory approvals, the availability of financing and exploration risk. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.