TORONTO - Kerr Mines Inc. (TSX: KER, OTC: KERMF) and Star Royalties Ltd. jointly announced the closing of the first installment of their previously announced US$18,000,000 gold purchase and sale agreement which will be used to finance the restart of underground operations and gold production at the Copperstone Gold Mine in Arizona, USA.
Giulio T. Bonifacio, Chief Executive Officer of Kerr, stated: "We are excited to enter this new chapter for Kerr Mines with the closing of this first installment of the Copperstone stream financing. We look forward to working with Star Royalties to expeditiously restart operations at our flagship asset. Our focus now shifts to securing long term lead items, finalizing the process facilities to accommodate our whole ore leach approach, and sourcing underground contractors and equipment."
Alex Pernin, Chief Executive Officer of Star Royalties, commented: "Following our comprehensive due diligence process, we have great confidence in both Copperstone's potential and Kerr's ability to execute a successful restart of operations. We look forward to working closely with their team as we transition Copperstone into Arizona's next gold producing mine."
The US$18 million advance payment under the Streaming Agreement will be provided in three equal installments, with the first US$6 million installment having now been advanced. The remaining two tranches will be advanced at the request of Kerr as it incurs expenditures for the restart of Copperstone, with a further US$6 million payable on or before February 28, 2021 and the final US$6 million payable on or before April 30, 2021.