Kintavar Exploration Inc. declared that it has signed a Letter of Interest (LOI) with Brunswick Exploration Inc. (BRW) to option out the Baie Johan Beetz (BJB) property on the North Shore of Quebec.
The LOI will be used to finalize the agreement, which will be structured as shown below. BRW could earn up to 100% interest in the BJB property if the agreement is accepted for filing by the TSX Venture Exchange (“TSX-V”).
- Kintavar receives a total payment of $1,020,000 over four years:
- Payment of $20,000 upon signing of the agreement
- Payment of $100,000 on the first anniversary
- Payment of $200,000 on the second anniversary
- Payment of $300,000 on the third anniversary
- Payment of $400,000 on the fourth anniversary
- Also, every anniversary payment will consist of a mix of cash and shares, with a minimum of 20% in cash and a maximum of 80%.
- Over the four-year period, BRW will undertake the mentioned exploration expenditures amounting to $2,000,000:
- Expenditures of $150,000 on the first anniversary
- Expenditures of $250,000 on the second anniversary
- Expenditures of $400,000 on the third anniversary
- Expenditures of $1,200,000 on the fourth anniversary
- 2% NSR royalty, of which the first 1% can be repurchased for $1,000,000. On the second 1% tranche, BRW will have a Right of First Refusal.
- Additional Kintavar milestone payments include:
- $250,000 upon completion of a Mineral Resource Estimate
- Payment of $750,000 upon completion of a Preliminary Economic Assessment
- Every milestone payment will be a mix of cash and shares, with a minimum of 20% in cash and a maximum of 80%.
Just like the Wabash and Mitchi properties, the BJB project holds a significant polymetallic potential. Kintavar is very pleased to be working with BRW and their exploration team lead by Mr Robert Wares who is responsible for several major mine discoveries in North America.
Kiril Mugerman, President and CEO, Kintavar Exploration Inc.
Kiril Mugerman adds, “This new lithium potential at the BJB property, on top of the copper and silver mineralization, further helps diversify our exposure to various precious and critical metals. Furthermore, it demonstrates the potential of the significantly underexplored Grenville geological province that Kintavar has focused on for the last 5 years.”