Stock up as Kennecott ends speculation over Whistler ownership structure
Kiska Metals Corp. (TSX: V.KSK, Stock Forum) says Rio Tinto Plc (NYSE: RTP, Stock Forum) subsidiary Kennecott Exploration Co. has elected not to exercise certain back-in rights that could have given the U.S. company a 60% stake in the Whistler project in Alaska, leaving Kiska with only a 40% project interest.
As a result, Vancouver-based Kiska now controls 100% of the 527 square kilometer exploration site which is located about 150 kilometres northwest of the city of Anchorage. Kennecott will continue to hold a 2% net smelter return royalty on the property.
Clarification of the ownership structure sent Kiska shares up by over 5% to $1 Wednesday, giving the company a market cap of $66.3 million. The move in the stock price appears to confirm that uncertainty over Kennecott’s intentions had been an overhang on the junior’s stock price.
“Kennecott has been an excellent partner, providing valuable expertise and insight into the project,’’ said Kiska President and Chief Executive Officer Jason Weber. “In securing a 100% ownership interest, we look forward to growing the resource at the Whistler deposit, developing new porphyry discoveries and substantiating Whistler as North America’s next gold camp.’’
Kiska currently has two drill rigs operating on the Whistler property and will hold a conference call to update investors on the status of the project at 8:00 a.m. Pacific time on Thursday morning.
When Stockhouse visited the Kiska camp recently, the company was focusing on a cluster of targets, all of which lie within 25 kilometres of Whistler, the project’s only defined deposit so far.
Whistler has an indicated resource of 30 million tonnes, grading 0.87 grams per tonne gold, 2.46 grams per ton silver and 0.24% copper, as well as an inferred resource of 134 million tonnes, grading 0.64 grams per tonne gold, 2.18 grams per tonne silver and 0.20% copper.
