TSX Venture Exchange
Trading Symbol: KLD
VANCOUVER, BC, Nov. 3, 2021 /CNW/ - Kenorland Minerals
Ltd. (TSXV: KLD) (OTCQX: NWRCF) (FSE: 3WQ0)
("Kenorland" or the "Company") is pleased to announce
the closing of a $5.2 million
strategic investment (the "Financing") by Sumitomo Metal
Mining Canada Ltd. ("Sumitomo").
Sumitomo subscribed for and purchased 5,211,945 common shares at
a price of $1.00 per share for
aggregate gross proceeds of $5,211,945, resulting in Sumitomo owning
approximately 10.1% of the Company's outstanding common shares.
The proceeds from the Financing will be used 80% ($4,169,556) for exploration expenditures on the
Company's properties and 20% ($1,042,389) for general and administrative
expenses of the Company.
"We are delighted to welcome Sumitomo Metal Mining as a
strategic investor in Kenorland," commented Zach Flood, President and CEO of Kenorland.
"Sumitomo's investment is a significant milestone for us and
represents a strong endorsement of our team, the Frotet Project,
and our additional projects and partnerships within the exploration
portfolio. We look forward to continued success and building
an even stronger relationship with our newest significant
shareholder."
In connection with the strategic investment by Sumitomo, the
Company and Sumitomo also entered into an investor rights
agreement, whereby, subject to certain conditions, including time
and ownership thresholds, Sumitomo will have certain rights,
including the right to appoint one director of the Company.
In addition, Sumitomo will have a right to participate in future
equity issuances to maintain its ownership in the Company and will
be provided with "piggy-back registration rights."
Under the investor rights agreement, for a period of two years,
Sumitomo has also agreed not to (a) commence a take-over bid; (b)
acquire the Company's shares, or direct or indirect rights to
acquire any of the Company's shares; (c) make, or in any way
participate in any solicitation of proxies to vote the Company's
shares; (d) make any public announcement with respect to, or submit
a proposal for, or offer of (with or without conditions) any
business combination, amalgamation or merger or similar transaction
involving the Company.
A copy of the investor rights agreement is available under the
Company's SEDAR profile at www.sedar.com.
Sumitomo has chosen Eiichi Fukuda
as its nominee to the Kenorland board, and Mr. Fukuda will be
appointed effective November 16,
2021. Mr. Fukuda is a graduate of the Institute of
Mineralogy, Petrology and Economic Geology, Faculty of Science,
Tohoku University, Sendai, Japan
(B.A. Geology). He joined Sumitomo Metal Mining Co., Ltd. in
Japan in 1986. He has held various
positions in the Sumitomo Metal Mining group companies such as
Senior Geologist of Hishikari gold mine, Managing Director of
Sumitomo Metal Mining Oceania Pty Ltd. in Sydney, Australia, Senior Geologist of Pogo
gold mine in Alaska, and General
Manager Exploration and Development in Minerals Resources Division
in Tokyo. He has been the
president of Sumitomo since 2016 and he is also a board member of
Teck Resources Ltd.
The common shares issuable in the Financing are subject to a
statutory hold period in accordance with applicable securities
legislation expiring on March 4,
2022.
About Kenorland Minerals
Kenorland Minerals Ltd. (TSX.V KLD) is a mineral exploration
Company incorporated under the laws of the Province of British Columbia and based in Vancouver, British Columbia, Canada.
Kenorland's focus is early to advanced stage exploration in North
America. The Company currently holds three projects in
Quebec where work is being
completed under joint venture and earn-in agreement from third
parties. The Frotet Project is held under joint venture with
Sumitomo, the Chicobi Project is optioned to Sumitomo, and the
Chebistuan Project is optioned to Newmont Corporation. In
Ontario, the Company holds the
South Uchi Project under an earn-in agreement with a wholly-owned
subsidiary of Barrick Gold Corporation. The Company also owns
100% of the advanced stage Tanacross porphyry Cu-Au project as well
as an option to earn up to 70% from Newmont Corporation on the
Healy Project, both located in Alaska,
USA.
Further information can be found on the Company's website
www.kenorlandminerals.com
Kenorland Minerals Ltd.
Zach Flood
President and
CEO
Tel: +1 604 363 1779
zach@kenorlandminerals.com
Kenorland Minerals Ltd.
Francis
MacDonald
Executive Vice President
Tel: +1 778 322 8705
francis@kenorlandminerals.com
Cautionary Statement Regarding Forward Looking
Statements
This news release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "will be
taken", "occur" or "be achieved". Forward looking statements
involve risks, uncertainties and other factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's filings with
Canadian securities regulators, that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking statements.
Although the Company believes that the assumptions and factors used
in preparing these forward-looking statements are reasonable based
upon the information currently available to management as of the
date hereof, actual results and developments may differ materially
from those contemplated by these statements. Readers are therefore
cautioned not to place undue reliance on these statements, which
only apply as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed times
frames or at all. Except where required by applicable law, the
Company disclaims any intention or obligation to update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/kenorland-closes-5-2-million-strategic-investment-by-sumitomo-301415335.html
SOURCE Kenorland Minerals Ltd.
