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LKA Gold, Kinross Gold USA Report Exploration, Option Deal

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LKA Gold Incorporated (OTCQB: LKAI) announces that it recently executed an "Exploration Agreement & Option" (the "Agreement") with Kinross Gold U.S.A., Inc. for the purpose of expanding its Golden Wonder Mine exploration beyond LKA's active workings.

The Agreement, amongst its other provisions, grants Kinross a five-year exclusive right to explore, and if successful, develop any mineral resource(s) containing 50,000 or more ounces of gold on LKA's properties above and adjacent to the Golden Wonder Mine located near Lake City, Colorado. If such a resource, or multiple resources, is discovered, LKA will have the option to enter into a joint venture with Kinross for the purpose of developing such resource(s) by reimbursing 40.25% of Kinross' exploration expenses in return for a 35% interest in the joint venture. If a joint venture is formed, LKA's contribution will also include all of LKA's Golden Wonder properties.

During the five-year exploration period, Kinross will, but is not obligated to, conduct exploration, at its own expense, while LKA will retain the exclusive right to continue exploration and development of any resources within a "Carve-Out Area" which is LKA's current area of operation.

According to LKA President, Kye Abraham, "This Agreement with Kinross enables us to get a look at, and participate in, any gold discoveries made over a much larger area, much sooner, than LKA's limited resources would otherwise allow." Mr. Abraham added, "As one of the world's preeminent gold producers, Kinross brings the technical and financial muscle this project needs. We're encouraged that Kinross recognizes the potential of this unique property."

Interested parties are encouraged to read the complete text of the Agreement which is attached to LKA's 8-K filed with the Securities And Exchange Commission on July 13, 2015. More discussion on this and related subjects can be found in the "President's Email Updates" and "President's Archive" on the Company's website at: http://lkagold.com/Management_Team_-_LKA_Inter.html
Details of Golden Wonder commercial and exploratory gold shipments can be found on the Home Page of the Company's website at: www.lkagold.com

Posted-In: News Commodities Markets Press Releases

 

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