West Mining options Kena gold property, will focus on other B.C. projects
West Mining Corp. [WEST-CES, WESMF-OTC, 1HL] has granted privately owned Upside Gold Corp. an option to acquire a 100% interest in the company’s Kena property in British Columbia.
The Kena property hosts several large gold and copper zones. According to a National Instrument 43-101-compliant technical report, the Kena and Gold Mountain zones contain 2.8 million ounces of gold in the inferred category and 561,000 of gold in the indicated category.
To exercise the option, United Gold has agreed to make cash payments of $2.0 million to West Mining. The payments will be made in stages up to January 20, 2028. Over the same period, Upside will also issue $3 million worth of common shares to West Mining, starting with $1 million worth by July 20, 2025. To exercise the option, United is also required to spend $3.5 million on exploration at Kena by January 20, 2028.
West Mining is a mineral exploration company with a focus on acquiring and exploring advanced and prospective early-stage projects. West is focused on its Kena gold projects in the Nelson Mining Division of southeastern B.C., its Spanish Mountain West and Junker gold projects in northern B.C. Junker is located in the Toodoggone district known as “Golden Horseshoe,” part of the Golden Triangle region.
The optionee is a private company incorporated in Alberta and is arms length to West Mining. Any optionee shares issued to West Mining under the option agreement will have a deemed value of 20 cents per share. However, if the shares have been listed on any stock exchange for at least 30 days prior to the issue of such shares, then the deemed value of the shares issued under the agreement, will be based on the 30-day volume weighted average price of the shares on such exchange prior to the issuance of such shares. If the optionee conducts an equity financing, the deemed value of the shares will be equal to the price per share under the equity financing.
“This option to Upside Gold gives West Mining the flexibility we need as we advance the Spanish Mountain and Junker projects,’’ said West Mining CEO Nader Vatanchi. “Additionally, with the work commitments Upside Gold has planned, we believe that both companies will benefit from this transaction.’’
West Mining shares were unchanged at 12.5 cents and trade in a 52-week range of 48.5 cents and 10.5 cents.
The over 9,000-hectare Kena project is located in British Columbia’s historic “Golden Arc” and consists of the Kena, Daylight and Athabasca properties, which trend along a 20-kilometre-long mineralized belt. The project hosts multiple historic small scale past producing gold mines.
The company has said it sees the potential for additional discoveries and the expansion of known zones.