News release KEX2013-05
Kent Exploration reports on Archean Star Financing and Marketing Offtake Agreement
Kent Exploration Inc. KEX: TSX.V, (the "Company" or "Kent") reports that Archean Star Resources Inc. (TSX.V: ASP) ("Archean"), a company that Kent holds an approximately 10 million share position in, has announced that it has entered into an exclusive Financing Agreement with Element Capital Partners Limited ("Element") of Hong Kong for 25 million common shares of Archean at AUD$0.20 cents a share for gross proceeds of AUD$5 million dollars (the "Financing").
The Financing, which Archean reports was priced at a 100% premium to its last traded market price, is Archean will meet the minimum listing requirements of the Australian Stock Exchange ("ASX") of AUD$3 million in net tangible assets, or a AUD$10 million market capitalization. Archean reports it is currently preparing a prospectus to be lodged with the Australian Securities Investment Commission ("ASIC") along with a concurrent listing application in order to inter-list the Company's common shares on the ASX (the "ASX Listing").
Archean states that the net proceeds of the Financing are to be used for exploration work on, and to earn an 80% interest in, the Monitor Property in the Coeur D'Alene Mining District of Idaho, for the listing of the Company's shares on the ASX, for a AUD$300,000 drilling program, co-funded by the Western Australia Department of Mines and Petroleum, on the Gnaweeda Gold Project, at Meekatharra, in the Murchison Gold District in Western Australia, and for general and corporate purposes.
In conjunction with the Financing, and subject to any establishment of a permitted, economic, minable resource at the Monitor Property in the Couer D'Alene Mining District, Idaho, Archean reported it had also entered into an exclusive agreement with Element Commodities North America LLC (an entity related to Element), to purchase and market any and all copper and copper equivalent concentrates (including gold and silver) that may be derived from any future production from the Monitor Property.
Archean recently entered into an Agreement with AMCOR to acquire an 80% interest in AMCOR's mining lease on the Monitor Property by spending US$2.1 million dollars over three years and issuing 3 million of its common shares over two years. Archean recently reported it had completed a NI-43-101 compliant report on the Monitor property and had reported in their news release ASP2012-14 that the most significant assay reported was 13.55% Cu, with two samples assaying over 7% Cu, and two samples over 5% Cu. Of the fifteen samples, only two assayed less than 1% Cu. The highest gold assays reported were 15.45 g/t Au, 9.67 g/t Au and 3.83 g/t Au from three samples taken from the Monitor shaft location. Anomalous gold and silver was also reported in fourteen of the fifteen samples taken
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Kent Exploration Inc. is a junior exploration company with a 100% interest in all its major projects, and is planning on building shareholder value through establishing cash flow from its permitted Flagstaff Mountain, WA, barite mine. Any positive cash flow is intended to reduce dilution and fund exploration on its three major high grade gold prospects (Alexander River, Paparoa and Lyell), in the highly prolific West Coast South Island gold fields of New Zealand. Additional shareholder value has been established through its approximately 15% interest in Archean Star Resources Inc, ("Archean") which is listed on the TSX Venture Exchange under the symbol ASP.
The Company has an experienced management and technical team with extensive exploration expertise and offers investors the potential for a major gold discovery on its New Zealand gold projects.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board of Directors, which accepts full responsibility for its contents.
ON BEHALF OF THE BOARD
"Graeme O'Neill"
Graeme O'Neill, President
Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), has reviewed, nor do they accept responsibility for, the adequacy or accuracy of this news release.