Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Canadian Explorer Again Employs Partnering Strategy to Create Shareholder Value

Share on Stocktwits


Kenorland Minerals options up to 80% of its South Uchi project in Alaska, one of the company's eight assets, to mining major, Barrick Gold.

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.

They are:


In Alaska

Healy (gold/flagship): optioned from Newmont Corp. for up to a 70% stake

Tanacross  (copper, gold, molybdenum/flagship): 100% owned


In Quebec

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.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Kenorland Minerals Ltd. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Kenorland Minerals Ltd. and Barrick Gold Corp., a company mentioned in this article.

Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe