MAS GOLD CORP. MAS Gold Corp. announced it has entered a non-binding Memorandum of Understanding with Kitsaki Management Limited Partnership in respect of MAS's exploration efforts in the La Ronge Gold Belt region. Kitsaki has managed the economic development activities for the Lac La Ronge Indian Band since 1981.
The MOU establishes a basis for maintaining a cooperative and mutually beneficial relationship between MAS, Kitsaki, and its shareholder, which respects the rights and interests of the Lac La Ronge Indian Band and Kitsaki while supporting MAS's exploration and development activities. Through this collaborative approach, MAS can work towards consent for its exploration and evaluation activities. Although subject to form binding agreements being entered into and any regulatory and stock exchange approvals and notices being obtained, the MOU provides that in consideration for the services to be provided by Kitsaki, MAS will provide Kitsaki with certain compensation that may, at the option of MAS be payable through the issuance of common shares of MAS.
Kitsaki will also invest $150,000 into MAS in the form of a convertible 5-year note carrying a zero-interest coupon and be convertible into MAS common shares at maturity or cash at MAS's option. However, Kitsaki will have a right to convert to common shares at market on each anniversary date of the agreement, and subject to the exchange. Kitsaki will also have a right to appoint one person to MAS's Board of Directors subject to regulatory and stock exchange requirements and such appointment being authorized at the MAS Annual General Meeting in 2023.
