By: AllPennyStocks.com News

Tuesday, January 8, 2013

The last few days has the Toronto Venture Exchange giving back a slight amount of its gains in a consolidation pattern after a nice run from a bottom support around 1,160 to highs of 1,242 on the first trading day of 2013. In morning trading on Tuesday, the smaller Canadian exchange is basically flat from Monday’s close at 1,224. In some news from the miner-rich Venture, Kiska Metals Corporation (TSX-Venture:KSK) said that it is selling its Thorn Property in British Columbia to Brixton Metals Corporation for $1.5 million in cash and seven million shares of Brixton. $50,000 will be due to Kiska on the execution of today’s announced non-binding Letter of Intent to sell the property. The transaction will be completed via a purchase and sale agreement between the companies.

Pending all conditions being met, including Brixton raising the cash portion of the deal and other customary conditions, the transaction is expected to be completed by the end of February.

Brixton has been earning a 51 percent interest in the Thorn Property, located 130 kilometers south of Atlin, BC, through a commitment of $5 million in exploration expenditures and staged cash and share payments. Exploration is targeting high sulphidation epithermal vein-hosted high-grade copper-gold-silver mineralization and breccia-hosted high-grade silver and gold mineralization. A phase 1 drill program was completed last July with highlights including 83.90 meters of 161.47 g/t silver, 1.02 g/t gold, 1.29% lead and 1.48% zinc. Results from a phase 2 drilling program, again showed lengthy intercepts of multiple minerals, including mineralization extended to depth at a cut of 123 meters grading 402.5 g/t silver equivalent.

To date, Brixton has spent $4.1 million in exploration at Thorn.

"With Brixton very close to fulfilling its exploration requirements for the 51% earn-in, this transaction simplifies the ownership of the Thorn Project while allowing Kiska to crystallize value in the project and yet maintain exposure to further exploration success by Brixton," stated Jason Weber, President and CEO of Kiska Metals. "We felt the opportunity to add cash to our treasury in a non-dilutive manner was prudent considering the market conditions junior explorers face today."

The sale will add cash to the coffers of Kiska for additional exploration at its 100-percent-owned Whistler property in Alaska. Whistler is a district-scale project 150 kilometers northwest of Anchorage that includes the Whistler Deposit. Indicated and inferred, the deposit has 5.6 million ounces of gold equivalent as well as silver and copper reserves. Locked cycle flotation tests on two composite samples from Whistler disclosed in December returned average copper concentrates grading 25.4% copper with recoveries averaging 91.9% for copper and 70.4% for gold. These tests indicate that the Whistler deposit is very receptive to standard flotation techniques.

Shares of Kiska have been on a multi-year slide, but are giving signs of trying to find a bottom at 12.5 cents. Today’s news has lifted shares by a modest 3.8 percent to 13.5 cents in afternoon trading.

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