Kinross joint venture with Gold79 AUUKinross shareholders should get in on this. Gold 79 at 3 cents is a steal. We are just waiting on a permit then it all kicks in. It should be coming any day.Here is the agreement.
The terms of the Agreement include:
- Initial cash payments and cost reimbursements from Kinross totaling US$50,000.
- A commitment to purchase up to 9.9% of the issued and outstanding shares of Gold79 on a partially diluted basis (for no greater than US$200,000).
- Kinross will make ongoing lease payments of US$75,000 per year for the term of the agreement, the first payment of which is due within 30 days of closing.
- Kinross is required to spend US$600,000 in exploration work and will be responsible for making the payments to keep the unpatented claims in good standing.
- During the term of the agreement, Kinross has the option to acquire 70% of the project for a cash payment of US$5,000,000 to Gold79 and form a joint venture LLC, and a second option to acquire an additional 10% of the project for a further payment of US$5,000,000 to Gold79.
- The term of the Agreement is four years commencing from receipt of the pending drill permit, with a potential extension of up to two years, subject to certain conditions.
- If an LLC is formed, in the event that either party is diluted below 10%, its interest converts to a 1% net smelter returns (NSR) royalty.