Kria Resources

Kria Resources

September 04, 2009 17:00 ET

Kria Resources Announces Issuance of Common Shares and Warrants to Xstrata Canada Corporation-Xstrata Zinc Canada Division

TORONTO, ONTARIO--(Marketwire - Sept. 4, 2009) - Kria Resources (TSX VENTURE:KIA) ("Kria" or the "Company") today announced that on August 17, 2009, Kria issued to Xstrata Canada Corporation - Xstrata Zinc Canada Division ("Xstrata") 10,416,666 common shares (the "Common Shares") priced at $0.24 and 5,208,333 common share purchase warrants (the "Warrants") in the capital of Kria. Each Warrant entitles the holder thereof to acquire one Common Share at an exercise price of $0.24 for a four year period from the date of issue. The issuance of securities was made pursuant to an option agreement entered into by Kria and Xstrata dated as of July 16, 2008, as amended on August 17, 2009, whereby Xstrata granted Kria the option to acquire from Xstrata the Halfmile Lake and Stratmat Properties located near Bathurst, New Brunswick, subject to the satisfaction by Kria of certain further payment conditions.

Together with the Common Shares and Warrants issued to Xstrata in July 2008, Xstrata now holds 13,916,666 Common Shares and 6,958,333 Warrants. If each of the Warrants were exercised today, Xstrata would hold approximately 32% of the issued and outstanding Common Shares. The issuance of Common Shares and Warrants by Kria was made on a prospectus-exempt, private placement basis, in reliance on the "accredited investor" exemption in Section 2.3 of National Instrument 45-106 - Prospectus and Registration Exemptions of the Canadian Securities Administrators.

About Kria Resources

Kria Resources is a base metal exploration and development company focused on high-quality, advanced-stage base metal assets. Kria's primary asset is the Halfmile Lake and Stratmat properties near Bathurst, New Brunswick. The Halfmile Lake property has a NI 43-101 compliant Indicated mineral resource estimate of 6.26 million tonnes grading 8.13% zinc, 2.58% lead, 0.22% copper and 30.78 g/t silver using a 5.0% capped zinc equivalent cut-off grade and an Inferred resource estimate of 6.08 million tonnes grading 6.69% zinc, 1.83% lead, 0.14% copper and 20.51 g/t silver using a 5.0% capped zinc equivalent cut-off grade. A recently completed Preliminary Economic Assessment of the Halfmile Lake project (the "PEA") estimates a pre-tax NPV of C$587 million and IRR of over 16%. The PEA is preliminary in nature; it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the PEA will be realized. The Stratmat property has an Inferred Mineral Resource estimate of 5.52 million tonnes grading 6.11% zinc, 2.59% lead, 0.40% copper and 54.21 g/t silver using a 5.0% zinc equivalent cut-off grade.

Kria also has the Ruttan copper-zinc sulphide project near Leaf Rapids, Manitoba that has an NI 43-101 compliant mineral inferred resource estimate of 19.75 million tonnes grading 1.17% copper and 1.47% zinc using a 1.0% capped copper equivalent cut-off grade. Please refer to the Beartooth Platinum and Kria Resources Information Circular of February 26, 2009 filed on SEDAR for details regarding the NI 43-101 compliant resource estimates on Halfmile, Stratmat and Ruttan.

Please visit our website at for additional information.

Quality Control

The technical contents of this press release have been supervised and reviewed by Steve Davies, P. Eng., Vice President Operations of Kria and Dayle Rusk, P. Geo., Vice President Exploration of Kria, both of whom are Qualified Persons as defined under NI 43-101 guidelines.

Regulatory Footnotes

Cautionary Note Regarding Forward-Looking Information This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the exploration and development prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations and environmental risks. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates regarding the projected economics of the projects are based on research, experience and analysis of the management of the Company and external advisors, which estimated are set out in detail in the PEA of the Halfmile Lake project that is available under the Company's profile on SEDAR. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company (and the company resulting from the successful completion of the proposed transaction) to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; delay or failure to receive board or regulatory approvals; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.


Contact Information

  • Kria Resources
    Mike Hoffman
    President and CEO
    Kria Resources
    Heather Colpitts
    Manager, Investor and Public Relations