BTU Metals announces agreements with Kinross Gold

BTU Metals (BTUMF) announced that it has entered into a series of transactions with Kinross Gold (KGC) that "will strengthen the exploration effort on the significant properties of BTU in the Great Bear gold area southeast of the main Red Lake Gold camp area of northwestern Ontario. The Dixie Halo Project is located adjacent to Kinross’s Great Bear project, BTU noted. The transactions include: a purchase agreement pursuant to which Great Bear Resources Ltd., a wholly-owned subsidiary of Kinross, acquired from BTU certain unpatented mining claims located in the Kenora District of Ontario, with BTU continuing to participate in those lands through a newly created royalty payable to BTU; an option agreement, which provides GBR with an option to earn a 70% interest in certain unpatented mining claims held by BTU located in the Kenora District of Ontario; and a subscription agreement pursuant to which Kinross purchased 25M common shares of BTU at a purchase price of CAD$0.05 per common share. BTU CEO Paul Wood commented; "We are very pleased to enter into this series of transactions with Kinross, which will: provide CAD$2.8M in cash to the company by way of a private placement and property sale, accelerate the exploration of BTU’s properties through an earn-in agreement of up to CAD$4.7M, and, in all cases, leave substantial upside for BTU shareholders through a royalty package and its at least 30% interests in the Optioned Properties of the Dixie Halo Project. BTU will fully support Kinross as they commence their exploration work on the Optioned Properties and we are very pleased to have Kinross as a partner. The company is also in the process of sourcing, accepting and assessing new and complementary minerals exploration projects to add to and diversify our property portfolio."