Iron Creek Capital Corp. (TSXV:IRN) announced that they have signed a non-binding letter agreement with a subsidiary of Kinross Gold Corp. (TSX-TO:K:) where  Kinross will acquire up to a 75% interest in Iron Creek’s Las Pampas property.

As quoted in the press release:

The Agreement can be summarised as follows:
Initial Option: Kinross will have the exclusive Initial Option, exercisable at its sole discretion, to earn an undivided 60% interest in the Concessions by;
Funding and incurring an aggregate of US$5 million in exploration expenditures over 4 years, including a minimum of US$500,000 in the first year
Subscribing for such number of units of Iron Creek by way of private placement that will cause Kinross to hold up to 20% of the issued and outstanding common shares of Iron CreekAdditional Option: After the exercise of the Initial Option, Kinross will have the exclusive Additional Option, exercisable at its sole discretion, to acquire an additional undivided 15% interest in the Concessions (to 75% interest in total) by;Funding and incurring an additional US$20 million in exploration expenditures over the 5 year period after the exercise of the Initial Option, or by completing a Canadian National Instrument 43-101 compliant bankable feasibility study with respect to the Concessions over the same time period.

Iron Creek`s President ,Tim Beale, said:

At a difficult time for the industry in general this is an exceptional agreement for Iron Creek. We are very pleased to have Kinross as our partner to invest in the Las Pampas property. Results from Iron Creek’s previous work, some of which was carried out with a previous joint venture partner, have suggested the property has excellent potential to host mineralised precious metals (bonanza) veins in particular.

To view the whole press release, click here.