On January 15, 2024, Kenorland Minerals Ltd. announced the conclusion of a significant transaction with Sumitomo Metal Mining Canada Ltd., effectively exchanging its 20% interest in the Frotet Project for a 4% net smelter return royalty. This agreement, dated January 15, 2024, allows Sumitomo to secure full ownership of the project, ending the joint venture established on April 17, 2018. The transaction included provisions for Sumitomo to reduce the royalty to 3.25% through future buy-down rights totaling a potential payment of C$13,000,000 to Kenorland.

The deal marks a pivotal shift for Kenorland, allowing the company to focus its resources on new explorations while maintaining significant royalty interests in the Frotet Project, which features the promising Regnault gold discovery. The transition of operational duties to Sumitomo is planned over the next year, following Kenorland's continued management to ensure a smooth handover.

The transaction hinges on regulatory approvals, including from the TSX Venture Exchange, and complies with the conditions of Multilateral Instrument 61-101, due to Sumitomo's status as a related party owning over 10% of Kenorland’s shares. The arrangement leverages exemptions from formal valuation and minority shareholder approval, as its value does not exceed 25% of Kenorland’s market capitalization.

This strategic move is set to enhance long-term shareholder value and consolidates Sumitomo's control over the Frotet Project, facilitating comprehensive development with the resources of a larger entity. The agreement underscores a mutual commitment to advancing the project, situated within Quebec's mineral-rich Frotet-Evans greenstone belt.