Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Kenorland Minerals (TSXV: KLD) agreed on Tuesday with Japan’s Sumitomo Metal Mining to exchange the company’s 20% participating interest in the Frotet gold project for a 4% net smelter return royalty.
This would result in Sumitomo consolidating 100% ownership of the project, thus ending the joint venture partnership established by the companies in April 2018. Kenorland initially staked the project in 2017.
The 393 sq. km. Frotet property is located within the Opatica geological subprovince of Quebec. It is adjacent to the past-producing Troilus mine, which has indicated gold resources totalling 9.23 million oz., and covers several major deformation zones associated with known orogenic gold prospects.
Hosted on the property is the Regnault gold system, a greenfields discovery made by the Kenorland-Sumitomo JV in 2020 following two years of systematic exploration. Since the initial discovery, Regnault has seen extensive exploration, totaling 82,273 metres of drilling (193 drill holes).
“Today marks the beginning of an exciting new chapter as we exchange our participating project interest for a substantial royalty interest covering the Frotet project. This includes the high-grade Regnault gold discovery, which has been steadily advancing under our joint venture with Sumitomo over the past year,” Kenorland CEO Zach Flood said in a press release.
Kenorland’s 4% net smelter return royalty will be subject to buydown rights in favour of Sumitomo.
A 0.25% royalty interest may be purchased for a C$3 million cash payment to the company within 5 years, and a further 0.50% royalty interest may be purchased for a C$10 million cash payment within 10 years.
By 1:40 p.m. ET Tuesday, Kenorland’s stock was up by 25% for a market capitalization of C$47.7 million ($35.3m).
