Kermode Resources Ltd. (KLM-TSXV) is pleased to provide the following update to its news release of May 27,2020.
The Company entered into an option agreement (the 'Option Agreement') with Strata GeoData Services Ltd. to acquire a 100% interest in the Vidette Lake gold project in British Columbia. The Option Agreement was signed on May 23, 2020 and is an arm's length transaction. No finder's fees are payable in connection with the transaction.
The option is exercisable over a period of 3 years but may be accelerated at Kermode's discretion. To exercise the option, Kermode must pay an aggregate of $35,000 in cash, issue an aggregate of 500,000 common shares in the capital of Kermode, and expend an aggregate of $225,000 on the planning, development and execution of a work program based on a mutually approved budget, over the next 3 years. The Option Agreement is subject to TSX Venture Exchange ('TSXV') acceptance. All shares issued pursuant to the Option Agreement will be subject to resale restrictions under applicable securities legislation and the rules of the TSXV.
The Option Agreement continues to be in good standing and the Company intends to proceed upon TSXV acceptance.
The debt settlement announced on May 27, 2020 has been reduced from $250,000 to $82,154, pursuant to which the Company proposes to issue 8,215,400 common shares of the Company at a deemed price of $0.01 per share to certain creditors of the Company in full satisfaction of the debt owed. The Debt Settlement is subject to TSXV acceptance. All shares issued pursuant to the debt settlement will be subject to resale restrictions under applicable securities legislation and the rules of the TSXV.
The non-brokered private placement announced on May 27, 2020 has been increased from $200,000 to $250,000, pursuant to which the Company proposes to issue 25,000,000 common shares at $0.01 per share. The proceeds will be used toward the $35,000 option payment and the initial 12 months of work on the Vidette Lake project, and for general working capital purposes. Completion of the private placement is subject to acceptance by the TSXV. All shares issued pursuant to the private placement will be subject to resale restrictions under applicable securities legislation and the rules of the TSXV.
The option to acquire the Vidette Lake project amounts to a 'fundamental acquisition' under TSXV policies, and as such trading of Kermode's shares on the TSXV has been halted and will remain halted until Kermode has made adequate filings with the TSXV and the TSXV resumes trading.
Don Moore, CEO of Kermode noted 'Kermode is continuing to focus on gold exploration and along with the Vidette property option, is actively seeking new projects.'
Contact:
Donald G. Moore
Tel: 604-377-9220
Email: dmoore@wascomgt.com
Forward-Looking Statements
This News Release may contain certain 'forward-looking' statements and information relating to Kermode which are based on the beliefs of Kermode's management, as well as assumptions made by and information currently available to Kermode's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. There is no assurance any of the shares-for-debt settlements, private placement or property option will occur on the terms as outlined above, or at all.
KERMODE RESOURCES LTD. 
