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Kermode Resources Ltd. — Capital/Financing Update 2023
Aug 17, 2023
42496_rns_2023-08-16_595c76c1-f8b9-4597-8fc1-6df4d833c40d.pdf
Capital/Financing Update
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Kermode signs option to lease Tonya Project in Nevada
Victoria, British Columbia - (August 16, 2023) - Kermode Resources Ltd. (TSXV: KLM) announces a new option agreement for the Tonya property in Nevada, USA. The option provides Kermode with the right but not the obligation to undertake a lease of the property. The property comprises unpatented mining claims in Pershing County, Nevada owned by Gold Range LLC.
Kermode will not issue any shares under the transaction at any time.
The first phase of the deal is the option, where Kermode begins with a one-year term that can be renewed for additional one-year periods by mutual consent of the counterparties so long as Kermode is paying or causing to be paid all annual claim maintenance fees and holding costs.
During this phase, Kermode may carry out certain “pre-drilling” mineral exploration activities including but not limited to mapping, rock, soil and geochemical sampling, geophysical surveys and other exploration activities. Kermode will not conduct drilling activities of any kind or nature whatsoever including auger, core, rotary, reverse circulation or other without first entering into the lease agreement contemplated in this Option Agreement.
| The second phase of the deal is a lease, where Kermode commits to these cash payments: | The second phase of the deal is a lease, where Kermode commits to these cash payments: |
|---|---|
| -on signing the lease | US$ 5,000 |
| -On the first anniversary | US$ 5,000 |
| -On the second anniversary | US$ 10,000 |
| - On the third anniversary | US$ 50,000 |
| - On the fourth anniversary | US$ 100,000 |
| - On the fifth & sixth anniversaries | US$ 150,000 |
| - On the seventh & eighth anniversaries | US$ 200,000 |
| - On the eighth anniversary and thereafter | US$ 250,000 |
The lease has a 10-year term and is renewable for 10-year increments so long as exploration or mining activity is ongoing.
In addition, there is a total five percent (5%) NSR Production Royalty with certain conditions: two percent royalty (2%) has no buy-down provision; the buy-down for the three percent (3%) is five million US$5,000,000 prior to the earlier of production or the Fifth Anniversary. There is also a thirty percent (30%) future sales interest.
About Kermode
Kermode is a junior mining company hunting for exploration opportunities around the world.
On Behalf of the Board of Directors, KERMODE RESOURCES LTD
"Peter Bell" President/CEO
For further information please contact: Tel: 1-250-588-6939 Email: [email protected] Website: https://linktr.ee/kermoderesources
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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. There is no assurance (i) that the Company will acquire the Project on the terms as outlined above, or at all, (ii) that the counterparty Gold Range LLC has made entirely accurate representations of all aspects of the property. 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.