Oct 8 2010
Kiska Metals Corporation reports that the Company has agreed to sell its Mexican subsidiary, M inera Geoinformatica, to Evrim Metals Corporation. Minera Geoinformatica holds all nine of Kiska's Mexican properties and a geological database for Mexico and parts of the southern United States.
Evrim will assume Kiska's Mexican offices and staff. In consideration, Evrim will issue two million shares to Kiska plus ongoing performance-based share payments. Evrim has agreed to an appointment of a Kiska representative to its Board of Directors.
"In keeping with our mandate of advancing the Whistler project, we are selling our Mexican assets to Evrim," stated Jason Weber, President and CEO of Kiska. "The Evrim team has a solid exploration background and is backed by an accomplished Board of Directors. We wish them every success in their endeavours and the advancement of the Minera projects."
In addition to the initial two million share payment, Kiska will receive on a yearly basis, share payments of 10,000 or 50,000 shares per property, depending on the status of the property, for a period of five years. Kiska is also entitled to additional share and cash payments for certain milestones relating to each of the nine properties Minera currently holds. Similar payments are also required if Evrim acquires any property out of the database included in the Minera sale. Kiska will also receive a 1,000,000 share payment for every property that is advanced to a positive production decision.
Source: Kiska Metals Corporation