Kenorland closes $7.49 million financing
Kenorland Minerals Ltd. [KLD-TSXV, 3WQ0] said Tuesday it has raised $7.49 million from a fully subscribed non-brokered private placement financing. Proceeds will be used to fund exploration activities on its existing project portfolio, which includes the Frotet Lake gold property in Quebec.
The private placement consisted of 10.7 million common shares, priced at 70 cents each. It included the purchase by Sumitomo Metal Mining Canada Ltd. of 1.08 million common shares, enabling the unit of a Japanese metals giant to maintain its 10.1% interest in Kenorland.
On September 19, 2022, the shares closed at 66 cents and currently trade in a 52-week range of 85 cents and 63 cents.
Kenorland is a company that aims to give investors a window on potential new discoveries in tier one mining jurisdictions in North America. The company currently holds four projects in Quebec, where work is being completed under joint venture and earn-in agreements with third parties.
The Frotet project, currently owned 65% by Sumitomo Metal Mining Canada Ltd. and 35% by Kenorland, covers 39,365 hectares of the Frotet greenstone belt, which hosts the past-producing Troilus gold-copper mine. Sumitomo has the option to increase its stake in the project to 80%
In Quebec, the pipeline of projects includes the Chicobi Project, which is held under an earn-in joint venture agreement with Sumitomo. It covers 51,257 hectares over the Chicobi deformation zone in the central Abitibi Greenstone Belt.
The Quebec portfolio includes the 161,025-hectare Chebistuan project, located on the northern Abitibi Greenstone Belt, where the company is planning for surface exploration this summer, work that will be funded by Newmont Corp., [NGT-TSX, NEM-NYSE].
Another key asset is the Healy project, which covers numerous untested gold targets within 14,500 hectares of prospective geology in the Goodpaster Mining District of Alaska. The Goodpaster District hosts the Pogo gold mine, currently operated by Northern Star Mining Ltd. [NST-ASX]. The property is located 180 kilometres southeast of Fairbanks or 70 kilometres east of Delta Junction which offers all amenities that are needed to serve exploration and mining activities.
The Healy Project was optioned from Newmont in 2018. Kenorland has the right to earn up to a 70% stake in the project by spending up to US$4.0 million by December 31, 2022.
In Alaska, the company holds the advanced-stage Tanacross porphyry copper-gold-molybdenum project, which has been optioned to Antofagasta Minerals S.A., a wholly-owned subsidiary of Antofagasta PLC [ANTO-LSE].
In an August 24, 2022 press release, the company said it had launched a US$2 million exploration program at Tanacross. It said exploration activities would carry on through August and September, with an update likely to be released later this year.