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Kermode Resources Ltd. — Capital/Financing Update 2023
Aug 19, 2023
42496_rns_2023-08-18_afe6b6b3-4d69-4df0-8670-c0946093c1df.pdf
Capital/Financing Update
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Kermode revises LOI for SANTA ANNA Project on Vancouver Island
Victoria, British Columbia – (August 18, 2023) - Kermode Resources Ltd. (TSXV: KLM) (“Kermode”) revises the proposed terms for a non-binding letter of intent (“LOI”) to acquire the SANTA ANNA (“Project”) in British Columbia from a group of four private individuals who are arm’s length to Kermode. The Project includes one exploration claim with license number 1097236 covering 517 hectares in Map Number 092K.
The LOI provides for a due diligence period extending to September 31st, 2023. During this period, KLM can elect to enter into a definitive agreement which will formalize the Transaction. Either party can conduct any activities during the LOI.
TERMS OF THE PURCHASE OPTION:
| Cash | Securities | Spending Req’s | |
|---|---|---|---|
| Signing | $0 | 20,000,000 | $0 |
| Year 1 | $0 | 0 | $0 |
| Year 2 | $0 | 0 | $0 |
| Year 3 | $0 | 0 | $0 |
| Year 4 | $0 | 0 | $0 |
| Year 5 | $0 | 20,000,000 | $0 |
WORK COMMITMENTS: None.
OTHER TERMS & CONDITIONS:
-
a Net Smelter Return royalty of two percent 2% where each half point 0.5% can be purchased from the vendors for $1M at any time at buyer’s discretion for a total buy-down of five million $4M.
-
a Sales Participation Right (SPR) of ten percent 10% of gross proceeds of any future transaction where KLM sells the property in the next ten years.
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]
Neither the TSX Venture Exchange nor its Regulation Services Provider accept 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) the conditions to closing the purchase and sale of the Project will be satisfied or waived, or (ii) that the Company will acquire the Project on the terms as outlined above, or at all. 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.