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Kenorland rises as Sumitomo makes strategic investment

Sumitomo Metal Mining Canada has strengthened ties with Kenorland Minerals, making a C$5.2 million strategic investment in the Canada-based junior.
Kenorland rises as Sumitomo makes strategic investment Kenorland rises as Sumitomo makes strategic investment Kenorland rises as Sumitomo makes strategic investment Kenorland rises as Sumitomo makes strategic investment Kenorland rises as Sumitomo makes strategic investment

Sumitomo has earnt a majority stake in Kenorland Minerals’ Frotet project in Quebec

Staff reporter

Sumitomo's investment at $1 per share gives it a 10.1% stake in Kenorland, which has a series of deals with mining majors.

The pair also entered an investor rights agreement, including Sumitomo's right to appoint a director.

The junior said 80% of the funds would be used for exploration and 20% for general and administrative purposes.

"Sumitomo's investment is a significant milestone for us and represents a strong endorsement of our team, the Frotet project, and our additional projects and partnerships within the exploration portfolio," Kenorland president and CEO Zach Flood said.

Sumitomo has earnt 80% of Kenorland's Frotet project and has an option on another Kenorland project in Quebec, Chicobi. 

Meanwhile, Kenorland has optioned its Chebistuan project in Quebec to Newmont and its South Uchi project in Ontario to Barrick Gold

In Alaska, it has the Tanacross project and an option to earn 70% of Newmont's Healy project.

Kenorland listed on the TSX Venture Exchange in January after a $10 million private placement as part of its reverse takeover of Northway Resources.

Its shares (TSXV: KLD) have since spanned 65c-$1.75 and closed up 12.7% yesterday to 80c, capitalising it at $37 million (US$30 million).