KINTAVAR EXPLORATION

12:16 PM EDT, 05/28/2020 (MT Newswires) -- (Updates shares following resumption of trading.)

Kintavar Exploration (KTR.V) were up 28% after the company on Thursday said it agreed to option up to 75% of its Anik gold property in Quebec to Iamgold (IMG.TO) for C$4 million in exploration spending over five years and C$0.6 million in staged cash payments.

The company said Iamgold can boost its stake to 80% if it spends a further C$0.5 million in exploration costs following the end of the five-year earn-in period and producing a preliminary economic assessment for the property.

"Partnering with a major having a reputation such as Iamgold to advance the Anik gold project, Kintavar shareholders will have significant upside exposure to one of the most active gold exploration regions in Quebec," chief executive Kiril Mugerman said in a release.

Kintavar will receive a further payment of C$0.4 million if Iamgold discovers more than 300,000 ounces of gold on the property, and a further C$1 million if Iamgold builds a mine on the site.

The company's shares were last seen up C$0.025 to C$0.115 on the TSX Venture Exchange.