Kintavar to Acquire “Pourvoirie Fer a Cheval” to advance development of the Mitchi Project
July 15 2019 - 6:00AM
Kintavar Exploration Inc. (the “
Corporation” or
“
Kintavar”) (TSX-V: KTR) (FRANKFURT: 58V), is
pleased to announce that it entered into a share purchase agreement
to acquire (the “Acquisition”) the Pourvoirie Fer a Cheval (“Fer a
Cheval”), one of the most developed hunting and fishing outfitters
in the region, that shares its exclusive hunting territories with
Kintavar’s Mitchi property.
Fer a Cheval – opening the door to
future developmentThe Acquisition is strategic for
Kintavar as it addresses several key points:
- Location – The Fer a Cheval is a large hunting and fishing
outfitter with an exclusive territory of nearly 240 km2 that covers
a large portion of the northern part of the Mitchi sedimentary
basin. This transaction will guarantee that any future developments
of the Mitchi project is done in full synergy to support and
develop the Fer a Cheval existing business;
- Key infrastructure – The Fer a Cheval owns key local assets
such as the power line, private road access, fueling station and
over 100 sleeping accommodations. The ownership of this
infrastructure will have a major influence on any future capital
costs of developing the Mitchi project.
- Environmental and social acceptability – the Mont Laurier
region residents have been very supportive of the Mitchi project
since day one, even though the mining industry is new to the
region. The acquisition of the Fer a Cheval allows Kintavar to
continue developing the region, work more with the local
communities and most importantly remain focused on the
environmental and sustainable development aspects of the Mitchi
project.
- Growing cash flowing business – The Fer a Cheval has been in
operation for over 10 years and has developed into a very active
business for more than just hunting and fishing. The region has
also been developed for snowmobiling and ATV riding and attracts
many outdoor enthusiasts to the area. The Fer a Cheval has grown
over the years and is a central location for lodging to major
companies such as Hydro Quebec (15 km from the La Verendrye sub
station), forestry companies and even forestry firefighting
organizations. Kintavar intends to keep operating and optimizing
the Fer a Cheval. It will be generating funds and as well have
major synergies with its exploration activities, as such,
management is confident shareholder value will be maximized.
“Acquiring the Fer a Cheval that shares its
territory with the Mitchi property is a very important
milestone for Kintavar. It provides the Corporation with
immediate revenues and cash flows which is practically unheard of
at the exploration stage of a junior. As the owner and operator of
the Fer a Cheval, Kintavar will be able to facilitate and
accelerate future permitting and development requirements, as the
Mitchi project advances towards production. With access to road,
low cost hydroelectric power, accommodations and heavy machinery,
Kintavar is in a unique situation moving forward especially with
the potential to develop a mining operation accessible by road and
not dependant on higher cost and greenhouse gases emitting diesel
power. Finally, and most importantly, it demonstrates to all of our
shareholders Kintavar’s belief that the Mitchi property will become
a major copper project. We look forward to conducting our 2019
drilling program following our recent progress on the field. I
would also like to extend my thanks to the Mont-Laurier investors
and the owner of the Fer a Cheval for being very supportive of our
initiatives and look forward to advancing the Mitchi project,”
comments Kiril Mugerman, President & CEO of Kintavar.
Transaction detailsKintavar
will be purchasing all the shares of the private company owning Fer
a Cheval, through a new wholly owned subsidiary of the Corporation,
in consideration of $2.3M, including $1M financed through long-term
debt with two local financial institutions, 3,125,000 common shares
(each a “Share”) of Kintavar at a deemed price of $0.16 ($500,000),
and the balance in cash at closing, which is planned for August
1st. The Shares will be subject to a voluntary escrow for a
duration of 2 years, with 25% being released every 6 months.
For anyone who wants to learn more about the Fer
a Cheval, they are invited to visit its website
www.feracheval.ca
The Acquisition remains subject to approval of the TSX Venture
Exchange. The Shares issued as consideration pursuant to the
Acquisition will be subject to a statutory hold period of four
months and one day from the date of issuance.
About Kintavar Exploration & the
Mitchi Property
Kintavar Exploration is a Canadian mineral
exploration Corporation engaged in the acquisition, assessment,
exploration and development of gold and base metal mineral
properties. Its flagship project is the Mitchi property (approx.
30,000 hectares, 100% owned) located west of the Mitchinamecus
reservoir, 100 km north of the town of Mont-Laurier. The property
covers an area of more than 300 km2 accessible by a network of
logging and gravel roads with a hydro-electric
power substation located 14 km to the east. The property is
located in the north-western portion of the central metasedimentary
belt of the Grenville geological province. Many gold, copper,
silver and/or manganese mineralized showings have been identified
to date, with many characteristics suggesting of a sediment-hosted
stratiform copper type mineralization (SSC) in the Eastern portion
of the property and Iron Oxide Copper Gold (IOCG) and skarn type
mineralization in the Western portion. Osisko holds a 2% NSR on 27
claims of the southern portion of the Mitchi property, outside of
the sedimentary basin.
For further information contact:
Kiril Mugerman, President and CEO Phone : +1 450 641 5119 #5653
Email : kmugerman@kintavar.com Web: www.kintavar.com
Forward looking Statements:Neither 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.
This news release contains statements that may
constitute “forward-looking information” or “forward looking
statements” within the meaning of applicable Canadian securities
legislation. Forward-looking information and statements may
include, among others, statements regarding future plans, costs,
objectives or performance of the Corporation, or the assumptions
underlying any of the foregoing. In this news release, words such
as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”,
“anticipate”, “intend”, “plan”, “estimate” “target” and similar
words and the negative form thereof are used to identify
forward-looking statements. Forward-looking statements should not
be read as guarantees of future performance or results, and will
not necessarily be accurate indications of whether, or the times at
or by which, such future performance will be achieved. No assurance
can be given that any events anticipated by the forward-looking
information will transpire or occur, including additional closings
of the private placement referred to above, or if any of them do
so, what benefits the Corporation will derive. Forward-looking
statements and information are based on information available at
the time and/or management's good-faith belief with respect to
future events and are subject to known or unknown risks,
uncertainties, assumptions and other unpredictable factors, many of
which are beyond the Corporation’s control. These risks,
uncertainties and assumptions include, but are not limited to,
those described under “Risk Factors” in the Corporation’s
management’s discussion and analysis for the fiscal year ended
December 31, 2018, which is available on SEDAR at www.sedar.com;
they could cause actual events or results to differ materially from
those projected in any forward-looking statements. The Corporation
does not intend, nor does the Corporation undertake any obligation,
to update or revise any forward-looking information or statements
contained in this news release to reflect subsequent information,
events or circumstances or otherwise, except if required by
applicable laws.
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