Sumitomo invests $5.2 million in Kenorland Minerals, stock jumps
Kenorland Minerals (TSXV: KLD) said today Sumitomo Metal Mining Canada made a $5.2 million investment in Kenorland.
Kenorland was up 10% to 78 cents as of 11:43 a.m. ET.
Sumitomo purchased 5,211,945 common shares at a price of $1.00 per share for aggregate gross proceeds of $5,211,945. Sumitomo now has 10.1% of the company's outstanding common shares.
The company said 80% of funds will be used for exploration expenses.
The Abitibi greenstone belt of Quebec is the second richest gold region in the world, but it can be expensive to explore, said Francis MacDonald, executive vice president of exploration at Kenorland Minerals (CVE:KLD).MacDonald spoke to Kitco in mid-October.A layer of clay obscures vast areas of the northern Abitibi greenstone belt making it hard to sample and select drill targets.
"We are delighted to welcome Sumitomo Metal Mining as a strategic investor in Kenorland," commented Zach Flood, President and CEO of Kenorland. "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. We look forward to continued success and building an even stronger relationship with our newest significant shareholder."
By Michael McCraeFor Kitco News
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