Grizzly Discoveries Inc. has entered into a non-binding letter of intent with Kinross Gold Corp. to grant Kinross or its affiliate KG Exploration (Canada) Inc. the sole and exclusive right and option to acquire an undivided 75-per-cent legal and beneficial interest in and to approximately 27,346 hectares of Grizzly’s landholdings in southeastern British Columbia.
The non-binding LOI is subject to a 90-day exclusivity period during which the parties will make commercially reasonable efforts to enter a definitive option agreement, and Kinross may complete its due diligence of the claims.
Kinross may earn its 75-per-cent interest in approximately one-third of Grizzly’s lands that form part of its 91,050 hectares of claims in the prolific Greenwood area, stretching along the B.C./U.S. border from Osoyoos to Grand Forks. The target areas of interest to Kinross include the Rock Creek, Midway, Midway South, Sappho, Overlander, Attwood East and Grand Forks areas. These properties are situated north of Kinross’s Kettle River-Buckhorn mine in Washington, United States. For more details, please see the map and National Instrument 43-101 Greenwood gold project technical report on the company’s website.
Kinross may earn a 75-per-cent interest in Grizzly’s interest by expending $3-million (U.S.), including a minimum of 3,000 metres of diamond drilling up to the end of the fifth year of the option agreement. In addition, Kinross must spend a minimum of $750,000 (U.S.) and drill a minimum of 750 metres within the first two years of the option. Should Kinross not complete the terms of the option, all optioned lands would revert to Grizzly. It is contemplated that if the option is exercised by Kinross that a joint venture or a jointly owned mining company will be formed on a 75-per-cent Kinross/25-per-cent Grizzly respective interest basis.