Kiska Metals Corporation ("Kiska" or "the Company") reports that the Company, has entered into a non-binding Letter Agreement dated January 7, 2013 to sell the Thorn Property to Brixton Metals Corporation for $1.5 million in cash (including $50,000 on execution of the LOI) and seven million shares of Brixton.
"With Brixton very close to fulfilling its exploration requirements for the 51% earn-in, this transaction simplifies the ownership of the Thorn Project while allowing Kiska to crystallize value in the project and yet maintain exposure to further exploration success by Brixton," stated Jason Weber, President and CEO of Kiska Metals. "We felt the opportunity to add cash to our treasury in a non-dilutive manner was prudent considering the market conditions junior explorers face today."
The transaction will be completed by way of a purchase and sale agreement ("SPA"). The completion of the Transaction will be subject to a number of conditions, including entering into the SPA, completion by Brixton of an equity financing to raise sufficient cash to finance the cash component of the consideration for the Transaction, approval of the SPA by Brixton and Kiska's respective boards and receipt of all required TSX Venture Exchange approvals. The transaction is scheduled to close by February 28, 2013 or such other date as mutually agreed to by parties. There can be no assurance that the transaction will be completed as proposed or at all.
The 189 square kilometre Thorn Property is located 120 kilometres northwest of Telegraph Creek, BC. Brixton signed an option agreement to earn a 51% interest in the Thorn by funding $5 million in exploration by the end of 2014 ($4.1 million spent to date). At Kiska's election, Brixton could fund an additional $10 million in exploration to earn an additional 14% interest (totaling 65%) in the property. Exploration is targeting high sulphidation epithermal vein-hosted high-grade copper-gold-silver mineralization and breccia-hosted high-grade silver and gold mineralization.