Jan 27, 2014
Dear Valued Shareholders,:
The market decline in 2013 was significant for our shareholders and the markets as a whole. Despite the challenges we face with the current market conditions, Kiska continues to generate and explore new high quality opportunities.
Kiska formed in 2009 as a result of a merger of Rimfire Minerals and Geoinformatics Exploration. Both companies were prospect generators with a proven track record of partnerships with leading producers -- Barrick, Newmont, AngloGold, Kennecott and Xstrata, to name just a few. As a prospect generator, the priority will be to leverage our exploration expertise and properties while continuing to form partnerships.
Part of our project portfolio was monetized to support the Company's operations in a non-dilutive manner, and the team is actively engaged in finding the right partners to advance currently held projects and find the next generation of discoveries. Our portfolio of royalties will help provide important funding mechanisms going forward as some of the royalties are producing assets.
2013 highlights include:
• Entered into an agreement with Teck Resources on the Company's Kliyul Project, BC. Under the First Option, Teck can earn a 51% interest in the Property by incurring a cumulative aggregate of $5.5 million in exploration expenditures on the Property on or before January 31, 2018. Should Teck exercise the First Option, Teck may elect to acquire an additional 14% interest in the Property, for a total interest of 65%, by incurring an additional $6.5 million in exploration expenditures (for a total of $12.0 million) on the Property on or before the third anniversary of the exercise of Teck's First Option.
• Signed exploration agreement with Baker Hughes Oilfield Operations. Under the agreement Baker Hughes has the right to explore the Hilltop Property, Nevada for barite minerals. Kiska will receive a royalty of US $2.00 per ton on future barite production but still have the flexibility to bring in another partner for gold exploration.
• Entered into an exploration alliance with Lefebure Geologic Ltd. to generate copper and gold exploration targets in a defined region in north central British Columbia. This is an area in which the Company has an extensive geological database and existing projects.
• Sold our 49% interest in the Thorn Property to Brixton Metals for $1.5 million in cash and 7 million shares.
• Kiska recently filed a Statement of Claim against St Andrew Goldfields Ltd. in relation to a 2005 Net Smelter Royalty Agreement. Kiska is asking the Court to determine its rights under the Agreement and consequential damages relating to St Andrew's failure to remit NSR payments.
October brought along changes in management with the departures of Jason Weber - President and CEO, Mark Baknes - Vice President, Exploration and Chairman - Geoff Chater. I'd like take this opportunity to thank Jason, Mark and Geoff for their important contributions to the Company over the years and wish them all the best in their future endeavours.
Kiska has further strengthened its most precious resource, people. We are pleased that Henry Awmack, P. Eng has joined the Board of Directors. Henry has over 30 years' experience in the mining industry. As a co-founder of Equity Engineering Ltd. in 1987, Henry has managed all aspects of a geological consulting and contracting firm and his depth and practical experience in the exploration industry will add significant value to the Company.
The key to Kiska's success in 2014 will be its people and business model. 2014 promises to be a year of growth and opportunity for Kiska. Our objective is to capitalize on our existing relationships and generate new ideas to facilitate new partnerships. We will continue to strengthen our relationships with our business partners, the technical community and our shareholders. As junior companies continue to make discoveries that drive the mining industry, major companies will align themselves with the strongest technical teams, like Kiska.
The board and management are well into the selection process for a successor as CEO. I will be departing Kiska once the candidate is chosen, and view this transition in a very positive light. Succession is a healthy and necessary process of the Company as it evolves. The quality of candidates being considered for the CEO position is encouraging, and the developing leadership and culture among the team allows me to exit with confidence.
On behalf of the management team and our dedicated directors, I would like to thank all of our shareholders for sticking with us through difficult market conditions and although I don't know what the future holds we will work hard to make sure that Kiska is not just a survivor but a Company that flourishes in the years ahead. If you have any questions or comments please feel free to contact us at 604-669-6660 or email at firstname.lastname@example.org
David Caulfield, P.Geo., Interim President & CEO
CAUTIONARY STATEMENT: No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This News Release includes certain "forward-looking statements". Other than statements of historical fact, all statements included in this release, including, without limitation, statements regarding future plans and objectives of Kiska Metals Corporation, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Kiska's expectations are the risks detailed herein and from time to time in the filings made by Kiska Metals Corporation with securities regulators. Those filings can be found on the Internet at http://www.sedar.com and http://www.sec.gov.