Kiska Metals Corp. (TSXV:KSK) announced that it has signed an agreement with a private equity fund under which the fund will provide US$300,000 to finance a “targeting exercise on the Company’s proprietary New Jersey Zinc database.”
The database contains information about around 800 banker’s boxes and 200 map tubes, spanning almost 150 years’ worth of base and precious metals exploration activity around the world.
As quoted in the press release:
Under the terms of the agreement, the Fund will acquire a 0.5% NSR royalty on projects generated from the targeting exercise, and will have the option to increase its royalty to 2% by paying Kiska an additional $500,000 for every 0.5% NSR rate increase for each property taken through the preliminary economic assessment stage. The Fund will also be entitled to 50% of the proceeds of any sales of data on projects generated from the targeting exercise.
Grant Ewing, president and CEO of Kiska, commented:
We are very pleased to enter into this agreement. This agreement provides an attractive way of financing the Company’s prospect generation activities and has the potential to provide additional cash to Kiska in the future. It is one example of how Kiska will continue to generate value and position itself for a market upturn in the future.