By: Tomas Ronolski - AllPennyStocks.com News

Tuesday, October 1, 2013

Canadian properties got a bit of a shakeup on Tuesday as Vancouver’s Teck Resources struck two deals. On one hand, Teck agreed to take shares of a junior in exchange for a property, while on the other hand striking a deal to get a piece of a British Columbia property from a different junior. Kiska Metals Corp. (TSX-Venture:KSK) delivered news first this morning, reporting that it entered into a Participation Agreement with Teck (TSX:TCK.B) granting Teck the right to option Kiska’s 100-percent owned (subject to a 1.5-percent NSR) Kliyul Project in north-central British Columbia, 67 kilometers southeast of the open pit Kemess Mine. Closed in 2011, the Kemess Mine produced about 3 million ounces of gold and 800 million pounds of copper during 13 years of operations.

The 6,537-hectacre Kliyul property is a gold-copper porphyry that hasn’t been drilled since 2006. Exploration at that time delivered several promising pieces of data, including an intersection of 217.8 meters grading an average 0.23% copper and 0.52 g/t gold in drill hole KL06-30, with the drilling ending at mineralization. Similarly, hole KL06-31 ended in mineralization and was highlighted by 24 meters of 0.20% copper and 0.44 g/t gold, 32 meters of 0.21% copper and 0.62 g/t gold and 20 meters of 0.14% copper and 1.21 g/t gold. A 2011 Induced Polarization survey delineated a large pyrite-sericite alteration. Additional exploration is currently ongoing.

In the agreement, Teck has agreed to give Kiska $500,000 as a convertible grid promissory note to fund a 2013 exploration program. Teck has until the end of January to elect to take up an option to earn a 51-percent interest in the property. If it chooses not to, Kiska has to repay the note through either cash or in shares valued at 11 cents each. If Teck does choose the option, the note will be considered expenditures towards Teck’s obligation to spend an aggregate of $5.5 million in exploration on the property before January 31, 2018 to earn its majority interest. If Teck ups its total expenditures to $12 million within the first three years of exercising the option, it will earn a total of 65-percent interest in the project.

Shares of KSK are trading at 8 cents, up one-half a penny, as the day winds towards a close.

In a second move, Teck entered into an agreement with Manitou Gold Inc. (TSX-Venture:MTU) providing Manitou with the right, title and interest in and to the Gaffney Property in exchange for 1 million shares of Manitou and 1 million warrants to purchase one share of Manitou at an exercise price of 50 cents over the next two years.

Teck will also retain a 2.5-percent net smelter return royalty on the property, less concessions in the agreement for Manitou to purchase the NSR from Teck and pursuant to an original option agreement between Manitou, David Healey and Karl Bjorkman from January 2011. On January 2011, Manitou signed an agreement to purchase the Gaffney project extension, an area that it has been exploring over the past two years to build upon promising historical exploration.

Shares of MTU are currently trading at 7 cents, even on the day.

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