Kesselrun Resources acquires additional claims at Bluffpoint near Rainy River

Kesselrun Resources Ltd. has entered into definitive agreements of purchase and sale in which Kesselrun has agreed to acquire a 100% interest in 7 contiguous mineral claims making up the Pine Centre property. The Property is approximately 190 hectares in size and is fully surrounded by existing claims owned by Kesselrun at the Bluffpoint Gold Project located in Northwest Ontario. The transactions are subject to receipt of all necessary regulatory and other approvals, including the approval of the TSX Venture Exchange, and the satisfaction of other customary closing conditions.

Michael Thompson, President and CEO of Kesselrun, states: "The Pine Centre Property is a strategic acquisition adding a valuable gold zone to the already target rich Bluffpoint Gold Project."

Pine Centre

The Property is comprised of 7 contiguous mineral claims covering approximately 190 hectares in size and currently entirely surrounded by existing Kesselrun claims at Bluffpoint. Previously, the claims were held by Mineral Mountain Resources where approximately 3500 metres of shallow drilling was completed in 2011 outlining an approximate 800 metre gold mineralized shear zone.

Transaction Details

Kesselrun will acquire a 100% interest in 4 mineral claims from two vendors for aggregate consideration of $6,000 in cash and 400,000 common shares of the Company. In addition, the two vendors were granted an aggregate 1.0% NRS royalty, with the Company having the right to repurchase 0.5% of the NRS royalty for $500,000.

Kesselrun has also entered into a definitive agreement to acquire a 100% interest in 3 additional contiguous mineral claims from a third vendor in consideration for $1,500 in cash plus a 1.0% NSR royalty, with the Company having the right to repurchase 0.5% of the NRS royalty for $500,000.

None of the vendors are Non-Arm's Length Parties of the Company (as that term is defined in the rules and policies of the TSX Venture Exchange). All securities issued pursuant under the Agreements will be subject to a statutory hold period expiring four months and a day from the date of issue.

Tags: Northern Ontario / Exploration / Gold / All Articles