Following discussions between Kernow Resources & Developments Ltd. and St. Elias Mines Ltd., the companies have agreed that Kernow will purchase St. Elias’ 51% interest in the Jales/Gralheira Property bringing its ownership of the Property to 100% by fulfillment of the following conditions:

1. Kernow will forgive all the outstanding payments due to Kernow by St. Elias (currently such payments are in the approximate amount of CDN$61,200).
2. Kernow will pay St. Elias the sum of CDN$50,000 on receipt of satisfactory documentation quit claiming all rights to the property to Kernow.
3. On Exchange approval, Kernow will issue St. Elias 1,000,000 shares in the capital of Kernow.
4. On receipt of a Full Mining License from the Portuguese Authorities and Exchange approval, Kernow will issue St. Elias a further 2,000,000 shares and pay to St. Elias a further CDN$100,000.
5. The resale of such shares will be restricted to not more than 100,000 shares per month for 10 months after the expiry of the respective restricted resale periods imposed by applicable securities legislation and the TSX Venture Exchange.
6. Kernow will seek permission from the Portuguese Mining Authorities to award St. Elias a 0.40% net smelter royalty on all metals produced from the property.

Download full news story