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Kermode Resources Ltd. — Capital/Financing Update 2022
Apr 7, 2022
42496_rns_2022-04-07_64b9fc10-0fb4-46d6-976b-75cd39fcae09.pdf
Capital/Financing Update
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KERMODE ANNOUNCES STOCK OPTIONS & UPDATES TERMS FOR PROPOSED OPTION ON LITTLE BAY COPPER PROJECT IN NEWFOUNDLAND
Victoria, British Columbia – April 5, 2022 – Kermode Resources Ltd. (TSXV: KLM) (the "Company" or "Kermode") announces it has granted 1,000,000 stock options to certain consultants of the company exercisable at a price of $0.05 per share for a period of five years from the date of grant. The options have been granted in accordance with the Company's stock option plan. The company also reports that 1,000,000 stock options have expired, which were previously issued to former corporate secretary Mr. John Fahmy.
Update to LOI for Little Bay Copper
KLM announces changes to the proposed terms to acquire the Little Bay copper project as in the non-binding letter of intent previously announced February 17th, 2022.
Total work commitments under the new deal are $4,250,000.00 over 4 years. Over the life of the deal, the total payments include 33,000,000 common shares in the capital of KLM plus $262,000.00 cash. The agreement provides for a two percent royalty ("2% NSR") with a buy-back of 1% for $2,000,000. The vendor group is six private Canadian individuals.
| Timing | Cash | Securities | Exploration or OtherWork Commitments |
|---|---|---|---|
| Signing | $12,000.00 | 1,500,000 | |
| Year 1 | $0.00 | 3,000,000 | $100,000.00 |
| Year 2 | $0.00 | 6,000,000 | $250,000.00 |
| Year 3 | $0.00 | 7,500,000 | $400,000.00 |
| Year 4 | $250,000.00 | 15,000,000 | $3,500,000.00 |
| Total | $262,000.00 | 33,000,000 | $4,250,000.00 |
|---|
The company Planet X Exploration Services Ltd. has a "right of first refusal" for all exploration work contracted by Kermode over the life of the option deal. The agreement is subject to the approval of the TSX Venture Exchange and satisfactory due diligence investigations by KLM.
Update to LOI for Rye Patch Silver
KLM continues negotiations with the project vendor for the Rye Patch project and will provide further updates.
About Kermode Resources
Kermode Resources is a junior mineral exploration company engaged in acquiring and advancing mineral properties globally.
ON BEHALF OF THE BOARD "Peter Bell" Peter N. Bell CEO and Director
Tel: +1 (250) 588-6939 Email: [email protected] https://linktr.ee/kermoderesources
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements" within the meaning of applicable Canadian and United States securities legislation (collectively herein referred to as "forward-looking information"). Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause Kermode actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.