Kiska Files Statement of Claim Against St Andrew Goldfields Ltd.
December 18 2013 - 3:47PM
Marketwired
Kiska Files Statement of Claim Against St Andrew Goldfields Ltd.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec 18, 2013) -
Kiska Metals Corporation (TSX-VENTURE:KSK) ("Kiska" or the
"Company") announces that it has filed a Statement of Claim against
St Andrew Goldfields Ltd. ("St Andrew") in the Ontario Superior
Court of Justice relating to a 2005 Net Smelter Royalty Agreement
("Agreement").
Pursuant to the Agreement, a predecessor to the Company
(Geoinformatics Exploration Inc.) compiled for St Andrew all
available geological, geophysical and exploration data in the East
Timmins Project Area and derived near-mine and "regional"
exploration targets, in exchange for a 0.5% NSR over the targets.
According to the Agreement, Kiska is entitled to receive NSR
payments for as long as any targets within the East Timmins Project
Area are operated as a mine from which ore is extracted by St
Andrew, or its affiliates or successors.
At the time of the Agreement, Geoinformatics was recognized as
an exploration targeting industry-leader utilizing empirical,
statistical, and sophisticated probabilistic methods to
electronically identify and rank exploration targets. In 2001
Geoinformatics' principals were part of the team that won the
"Goldcorp Challenge" in connection with ore targeting at Goldcorp's
Red Lake mine.
Pursuant to the Agreement, Geoinformatics identified a total of
19 near-mine targets around St Andrew's Hislop Mine that include
possible extensions of ore shoots and prospective structural zones.
In addition to these near-mine targets at Hislop, 81 regional
targets were identified in the project area. The Company alleges
that, under the Agreement, St Andrew is obliged to make 0.5% NSR
royalty payments in respect of both the near-mine and regional
targets. Currently, several of the identified targets relate to
producing St Andrew gold mines (Hislop Mine, Holloway Mine) and
exploration prospects. However, the Company has not received any
NSR royalty payments to date and alleges that St. Andrew is in
arrears in the amount of approximately $999,315, plus applicable
interest, in respect of NSR royalty payments under the Agreement
based on Kiska's understanding of St. Andrew's mining activity to
date from publicly available sources. The exact amount can only be
determined once St. Andrew provides additional information about
its tenure and production history as required under the
Agreement.
In connection with this action, Kiska is asking the Court to
determine its rights under the Agreement and consequential damages
relating to St Andrew's failure to remit NSR payments.
About Kiska Metals Corporation
Kiska Metals Corporation is a mineral exploration company with a
diverse portfolio of gold and copper projects available for
option/joint venture throughout North America and Australia. Kiska
has recently signed an option agreement with Teck Resources Limited
to advance the Kliyul gold-copper porphyry in north central British
Columbia. One of the more advanced assets is the Whistler property,
Alaska, a district-scale gold-copper porphyry project with
excellent exploration potential that contains a 2.25 M oz
gold-equivalent indicated resource. Kiska has numerous gold and
copper projects available for option-joint venture as well as an
extensive royalty portfolio available for purchase.
On behalf of Kiska Metals Corporation
David Caulfield, P.Geo., Interim President & CEO
CAUTIONARY STATEMENT: No stock exchange, securities commission
or other regulatory authority has approved or disapproved the
information contained herein. This News Release includes certain
"forward-looking statements". Other than statements of historical
fact, all statements included in this release, including, without
limitation, statements regarding future plans and objectives of
Kiska Metals Corporation, are forward-looking statements that
involve various risks and uncertainties. There can be no assurance
that such statements will prove to be accurate, and actual results
and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results
to differ materially from Kiska's expectations are the risks
detailed herein and from time to time in the filings made by Kiska
Metals Corporation with securities regulators. Those filings can be
found on the Internet at http://www.sedar.com and
http://www.sec.gov.
Kiska Metals CorporationCandice RidyardInvestor
Relations604.669.6660604.669.0898Kiska Metals CorporationDavid
Caulfield604.669.6660604.669.0898www.kiskametals.com
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