One of the ways that Kenorland Minerals Ltd. (KLD:TSX.V; 3WQO:FSE) creates value for shareholders is through partnerships with other mining companies for funding and exploration assistance, all to advance its projects.
The Canadian minerals explorer again just employed that strategy in that it partnered with and optioned its South Uchi gold project in Alaska to gold-copper major, Barrick Gold Corp. (ABX:TSX; GOLD:NYSE).
Kenorland granted Barrick the option to earn up to an 80% stake in its South Uchi project, as announced in a recent news release. To earn an initial 70% interest, Barrick must spend $6 million on mineral exploration at South Uchi in six years' time.
"The company is well funded."
Subsequently, the two companies will form a joint venture, if desired. If formed, Barrick then may earn the additional 10% by funding a feasibility study by the 10th anniversary of the option agreement.
South Uchi is one of Kenorland's pipeline projects and its only asset in Ontario, Canada. The 65,657 hectare property, in the Birch-Uchi Greenstone Belt in northwestern Ontario's prolific Red Lake District, boasts gold and lithium deposits.
The Vancouver, British Columbia-based company's other seven projects are in Alaska and Quebec, four of which involve partners.
Healy (gold/flagship): optioned from Newmont Corp. for up to a 70% stake
Tanacross (copper, gold, molybdenum/flagship): 100% owned
Frotet (gold/flagship): optioned to Sumitomo Metal Mining for up to an 80% stake
Chicobi (gold/pipeline): optioned to Sumitomo Metal Mining for up to a 51% stake
Chebistuan (gold/pipeline): optioned to Newmont Corp. for up to an 80% stake
O'Sullivan (gold/pipeline): 100% owned
Hunter (gold/pipeline): 100% owned
Of Kenorland's roughly 400,000 hectares of cumulative minerals rights, some are in Manitoba, but the company currently does not have a project there.
"The 65,657 hectare property ... boasts gold and lithium deposits."
A second way this exploration company creates shareholder value is by making metals discoveries through large-scale but systematic, early-stage exploration. As such, work is currently being done at several projects simultaneously, all located in geologically prospective mining jurisdictions, and the company is well funded.
Already this approach has paid off, as Kenorland, through its joint venture partnership with Sumitomo, made a gold discovery at Frotet in 2020.
Continue to watch this space for any new developments.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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