Grizzly Discoveries Signs Option Agreement with Kinross Subsidiary

Grizzly Discoveries Inc. (TSXV:GZD,OTCQX:GZDIF) announced that it’s executed an option agreement with a subsidiary of Kinross Gold Corp. (TSX:K,NYSE:KGC) regarding the exploration and development of Grizzly’s landholdings in Southeastern BC.
As quoted in the press release:

The Agreement grants Kinross the option to earn a 75% interest in approximately one third of Grizzly’s lands that form part of its 91,050 hectares of claims in the prolific Greenwood area, which stretches along the BC/USA border from Osoyoos to Grand Forks. The target areas under option include the Rock Creek, Midway, Midway South, Sappho, Overlander, Attwood East and Grand Forks areas. These properties are situated north of Kinross Gold Corporation’s Kettle River-Buckhorn mine in the State of Washington, USA.
Kinross can earn a 75% interest in Grizzly’s interest by completing US$3 million in exploration expenditures, including a minimum of 3,000 metres of diamond drilling, up to the end of the fifth year of the Option Agreement. To maintain the option, Kinross must spend a minimum of US$750,000 and drill a minimum of 750 metres within the first two years. Should Kinross fail to, or elect not to, complete the terms of the option, all optioned lands would revert to Grizzly. It is contemplated that if the option is exercised by Kinross, that a joint venture or a jointly owned mining company will be formed on a 75% Kinross, 25% Grizzly respective interest basis, with Kinross or an affiliate acting as operator.

Grizzly CEO Brian Testo commented:

This Agreement with Kinross facilitates an exploration program covering a significant portion of our BC property holdings, utilizing the extensive technical experience and funding that Kinross can bring to the Greenwood Project.” Mr. Testo added, “We at Grizzly are extremely pleased to be partnering with Kinross to continue work on the Greenwood Project.  This option, which covers one third of our Greenwood Project area, will focus on certain target areas, while Grizzly can focus on exploration on its retained targets and areas of interest.

Click here to read the full Grizzly Discoveries Inc. (TSXV:GZD,OTCQX:GZDIF) press release.