LKA Gold Executes Exploration Agreement & Option With Kinross Gold

(RTTNews) - LKA Gold Inc. (LKAI) said it recently executed an "Exploration Agreement & Option" with Kinross Gold U.S.A., Inc. to expand its Golden Wonder Mine exploration beyond LKA's active workings.

The agreement grants Kinross a five-year exclusive right to explore, and if successful, develop any mineral resource containing 50,000 or more ounces of gold on LKA's properties above and adjacent to the Golden Wonder Mine located near Lake City, Colorado.

If such a resource, or multiple resources, is discovered, LKA will have the option to enter into a joint venture with Kinross to develop such resource by reimbursing 40.25 percent of Kinross' exploration expenses in return for a 35 percent interest in the joint venture.

If a joint venture is formed, LKA's contribution will also include all of LKA's Golden Wonder properties.

During the five-year exploration period, Kinross will conduct exploration, at its own expense. LKA will retain the exclusive right to continue exploration and development of any resources within a "Carve-Out Area" which is LKA's current area of operation.