Kiska Files Statement of Claim Against St Andrew Goldfields
https://www.marketwatch.com/story/kiska-files-statement-of-claim-against-st-andrew-goldfields-ltd-2013-12-18-161734852?reflink=MW_news_stmp
VANCOUVER, BRITISH COLUMBIA, Dec 18, 2013 (Marketwired via COMTEX) -- Kiska Metals CorporationCA:KSK+10.00%("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.