Kent Exploration to Spin Off Gold Properties, Mine Barite

Midas Letter (06/17/2009)
Kent Exploration Inc. (TSX.V:KEX) is gearing up along with the recovering economy for a busy year. The company is planning to spin out its New Zealand and Australian gold properties into a new corporate entity by the end of the year, thus freeing up Kent to focus on developing cash flow from its North American project portfolio.

That means investors who buy Kent Exploration now will also participate in the new company on a one-share-of-the-new-company-for-every-four-shares-of-Kent basis.

In a phone interview this week, Graeme O'Neill, president and CEO of Kent Exploration said, 'We needed to split out the gold assets in New Zealand and Australia so that we could finance them separately without impairing our ability to fund the exploration and mine development over here. Our lawyers our now working on it, and Nancy Reardon, our senior consulting exploration geologist, is in Australia right now in order to speed up an independent NI-43-101 report, which is part of the requirement for the spin-out.'

New Company Projects
  • Gnaweeda Gold Project—The Gnaweeda Gold Project is the Australian gold project that Kent is earning a 100% interest in pursuant to an agreement with Teck Mining (TSX:TCK).

  • Reefton NZ Gold Project – The Reefton NZ Gold Project is located in the historic Reefton Gold Camp which has recorded placer production of over 10 million ounces and recorded hard rock gold production of over 2 million ounces. An operating gold mine is situated immediately to the east of the property boundaries is currently producing at 50-75,000 ounces/year.

  • North American Properties—Kent has a variety of exploration projects in North America, one of which may be in production by the end of this year.

  • Flagstaff, Washington—High grade gold targets with the upside of projected cash flow from a newly approved barite mine on the property.

  • Ivanhoe Creek - Nevada—The Ivanhoe Creek property, abutting Great Basin Gold's Hollister Gold Project, is situated along the Northern Nevada Rift ("NNR") on a Miocene-age structural zone that hosts several current and past producing mines. The property also contains a historic high quality Bentonite deposit.

  • Silver Hill, British Columbia—The Silver Hill property is located approximately 18 km east of Crawford Bay on Kootenay Lake, in south-eastern British Columbia. Mineralization consists of high grade silver, lead and zinc in shear zones."

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