KGHM reacts to report on Iron Mask mining property talks

NEWS UPDATE — KGHM International’s negotiations with a Vancouver mining investment firm are for mineral rights rather than property ownership, says a KGHM spokesman.

In a story this morning (Friday), The Armchair Mayor was first to report that Cicada Ventures Ltd. stated it has agreed in principle to a $1 million deal in which KGHM would acquire the mineral interest while Cicada would keep a 20-per-cent share of the profits.

KGHM International had refused comment to The Armchair Mayor for most of this week. However, later today, Robert Koopmans, the company’s senior communications strategist, released this statement:

“As announced recently by Cicada Ventures, KGHMI is in the process of negotiating for mineral tenure held by Cicada in the Knutsford area.

“KGHMI does not own surface rights to the majority of those Cicada claims.

“KGHMI is in the process of acquiring the Cicada claims only to advance planned Ajax works or infrastructure on a small portion on the northwest fringe of Cicada’s claims, on land KGHMI has long owned. KGHMI is in negotiations with Cicada to acquire all the claims only to satisfy Cicada’s business interests and demands.”

Reacting to The Armchair Mayor story, Kamloops This Week followed up with a story of its own about the Cicada announcement, and quoted John Schleiermacher of the Kamloops Area Preservation Association.

According to KTW, Schleiermacher said, “Their footprint will get larger and larger. Otherwise they wouldn’t be buying things left, right and centre. They’ll eventually gobble up Kamloops. It’s an elephant no one can avoid.”