|Mon Sep 9, 2002|
Sultan Minerals Signs Kena Property Agreement with Kinross Gold Corp.
|Sultan Minerals Inc. (SUL-TSX Venture) is pleased to announce that, subject to regulatory approval, it has entered into an agreement (the "Agreement") with Kinross Gold Corporation ("Kinross") whereby Kinross will fund not less than $500,000 in expenditures on or before December 31, 2002 and an additional $500,000 by September 4, 2003 to acquire an option (the "Option") to earn a sixty percent (60%) interest in the Kena Gold-Copper property (the "Project") owned by Sultan Minerals Inc. ("Sultan"). |
The Project covers 7700 hectares of mineral claims located near Nelson, British Columbia and comprises claims held solely by Sultan together with six (6) packages of mining claims held under option by Sultan, including the Kena Gold-Copper Property, Great Western Claim Group, Tough Nut Claim Group, Cariboo,Princess & Cleopatra Claim Group, the Starlight Claim Group and the Daylight Claim Group.
In order for Kinross to maintain and exercise the Option to earn its sixty percent (60%) interest, Kinross is required to incur and fund further expenditures of $9 million over the five year period ending September 4, 2007. Of these, $3 million must be incurred by September 4, 2005, and an additional $6 million thereafter.
Sultan will act as project operator and manager (the "Manager") and collect a management fee not to exceed ten percent (10%) of the direct costs incurred over the period to September 4, 2003. Kinross may then elect to assume the role of Manager and if such election is made, shall be entitled to charge a similar management fee not to exceed ten percent (10%) of direct costs. Should Kinross elect to continue to incur expenditures after the first year of the Agreement, Kinross shall also make annual cash payments to Sultan in the amount of $250,000 at the beginning of the second, third, fourth and fifth anniversaries of the Agreement.
After Kinross has earned its 60% interest in the Property, Sultan may elect either:
(a) to participate as to 40% in a joint venture with Kinross pursuant to a joint venture agreement; or
(b) to retain a 30% net carried interest in the Property which would entitle Sultan to receive 30% of net profits from the Property after all development costs have first been recouped.
Arthur G. Troup, President of Sultan Minerals Inc., stated:
"We are very pleased to have the support of Kinross Gold Corp. in advancing the exploration and development of the Kena Project, especially at a time when it is so difficult to raise equity financing for junior resource companies like Sultan. We believe that by entering into this agreement, the Project will be moved forward to possible production in the most effective and efficient manner possible.".
Arthur G. Troup, P. Eng
For further information please contact:
Investor Relations at LMC Management Services Ltd.
Tel: (604) 687-4622 Fax: (604) 687-4212
Toll Free: 1-888-267-1400 Email: Investor@langmining.com
No regulatory authority has approved or disapproved the information contained in this news release
You can view the Next 2002 News Releases item: Wed Sep 25, 2002, Sultan/Kinross To Commence Expanded Drill Program Kena Property, BC
You can view the Previous 2002 News Releases item: Thu Jul 11, 2002, Kena Gold Project Update
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