Impact: Neutral to Mildly Positive
Kesselrun announced it has agreed to acquire a 100% interest in the Pine Centre property. The property covers ~190 ha and makes up seven contiguous mineral claims. The claims were previously held by Mineral Mountain Resources (TSXV:MMV, Not Rated), where ~3,500m of shallow drilling was completed in 2011 and outlined an ~800m long gold mineralized shear zone. We view this acquisition as neutral to slightly positive for Kesselrun’s share price given the newly acquired ground is surrounded by the company’s secondary Bluffpoint project, though it is being picked up at a low cost (see deal terms below). The Pine Centre property adds another gold zone at Bluffpoint where numerous other gold zones have previously been defined. We look forward to potential future exploration updates or partnership agreements on this asset as we expect Kesselrun to remain focused on its flagship Huronian Au project.