Canadian Shield And Kinross Sign Letter of Intent to Form Alliance for Exploration In Peru
June 23 2009 - 9:00AM
Marketwired
Canadian Shield Resources Ltd. (TSX VENTURE: EXP) ("Canadian
Shield" or the "Company") is pleased to announce that it has signed
a Letter of Intent ("LOI") with Kinross Gold Corporation
("Kinross"). The LOI provides guidelines for the Exploration
Alliance which will carry out generative exploration in a
designated area of Peru. Kinross will fund US$500,000 in the
generative program over a 12 month period and Canadian Shield will
be the initial operator of the exploration programs.
Canadian Shield will provide local expertise and exclusive
access to a proprietary database built by Gallant Minerals Peru
Ltd. S.A. ("Gallant Peru"), a private exploration company. Canadian
Shield acquired 90% of Gallant Peru in 2004. The database comprises
a comprehensive compilation of both public and confidential
information. All the information has been digitized and is in a
Geographic Information System format with dozens of targets
identified, many of which have yet to be field checked.
The LOI provides that Kinross will fund US$500,000 of generative
work over 12 month term of the Exploration Alliance. Canadian
Shield and Kinross may form a joint venture in respect of any
exploration project identified under the Strategic Alliance and
subsequently staked, optioned or acquired (a "Joint Venture
Project"), subject to the discretion of a Technical Advisory
Committee made up of two members from each of Kinross and Canadian
Shield. Each Joint Venture Project will be initially owned 50% by
Kinross and 50% by Canadian Shield. Kinross will have the option to
earn an additional 25% participating interest in the Joint Venture
Project by spending a pre-determined amount over a two year period.
Once Kinross has earned a 75% participating interest, the Joint
Venture Project will then be funded on a pro-rata 75/25 basis by
Kinross and Canadian Shield, respectively. Standard dilution
clauses will apply, whereby if either party's interest dilutes to
less than 10%, that party's interest in the Joint Venture Project
will revert to a 2% net smelter royalty on all metals produced. The
LOI is a non-binding agreement and is subject to Kinross, Canadian
Shield and Gallant Peru entering into a definitive agreement
relating to the Exploration Alliance.
"Canadian Shield offers Kinross regional expertise in Peru, an
experienced exploration team and a database which will allow us to
immediately focus on high priority, grassroots exploration
targets", said Phil Anderson, VP Exploration for Canadian Shield.
"We are extremely pleased to have the opportunity to partner with
Kinross and look forward to generating new projects and increasing
shareholder value for both parties through this alliance", added
Mr. Anderson.
Investors are invited to visit the Canadian Shield IR Hub at
http://www.agoracom.com/IR/CanadianShield where they can post
questions and receive answers or review questions and answers
already posted by other investors. Alternatively, investors may
e-mail all questions and correspondence to EXP@agoracom.com where
they can sign up for the investor e-mail list to receive press
releases and updates in real time.
About Canadian Shield Resources Ltd. (TSX VENTURE: EXP)
Canadian Shield acquires and explores strategically-located
precious and base metal properties in South America. The Company
controls a portfolio of eight exploration properties located in
Peru and Chile. Canadian Shield will continue to focus on project
generation and joint venture opportunities to provide shareholders
with interests in a broad portfolio of South American mineral
properties. The Company's shares are listed on the TSX Venture
Exchange (Trading Symbol TSX-V: EXP). Further information is
available at Canadian Shield's website:
www.canadianshieldresources.com.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE. STATEMENTS IN THIS PRESS RELEASE, OTHER
THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING
TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS,
MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS
ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE
RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND
DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM
THOSE DESCRIBED IN THE FORWARD-LOOKING STATEMENTS.
Contacts: Canadian Shield Resources Ltd. Bernard Kraft Chairman
& Interim CEO Toll Free: 1-888-927-0025 or (416) 927-0025 Ext.
30 (416) 927-1222 (FAX) investor@canadianshieldresources.com
www.canadianshieldresources.com Canadian Shield Resources Ltd. Phil
Anderson VP Exploration (VoIP Line): (416) 907-5690 or (511)
719-6152 (511) 446-1194 (FAX) panderson@canadianshieldresources.com
Investor Relations AGORACOM Investor Relations EXP@Agoracom.com
www.agoracom.com/IR/CanadianShield
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