GIG HARBOR, Wash., Jan. 29, 2018 /PRNewswire/ -- LKA Gold Incorporated (OTCQB: LKAI) reports that certain members of the Koski family informed the Company of open market purchases of LKA shares. Over the previous 90 days, 85,700 shares were purchased in market transactions at various prices between $0.18 - $0.25 per share.
Regarding the purchase of additional LKA shares, Mr. Robert C. Koski commented, "Kinross's withdrawal from the Exploration and Option Agreement presents a unique opportunity for LKA. Kinross performed very useful and expensive services in its geological evaluation and first round of drilling at the Company's Golden Wonder mine. This work is now the property of LKA at no cost to the Company. This presents LKA with the opportunity to complete the Golden Wonder drilling program at its own expense, without the requirement to share any discoveries. LKA is back in the position of 100% control, and benefit, of any discoveries, instead of only a 35% interest it was previously entitled to under the Kinross-LKA agreement."
About the Koski Family
The Koski Family Limited Partnership ("KFLP") was organized in 1996 by members of the Robert E. Koski family as a vehicle for managing family assets and making strategic investments in a variety of industries. KFLP owns substantial equity interests in Sun Hydraulics Corporation (NASDAQ:SNHY), Oragenics, Inc. (NYSE:OGEN), nMetric, LLC, and other private companies. KFLP and members of the Koski family individually are LKA's largest shareholders. Recent purchases of LKA shares bring Koski family ownership to 8,785,700 shares which represents approximately 46% of LKA's total issued and outstanding shares of 19,261,717. (This ownership position does not include the purchase of $400,000 in LKA 7.5% Convertible Debentures which are convertible to LKA common stock at $0.50 per share).
About LKA's exploration program at its Golden Wonder Mine
As previously announced, the recently terminated Kinross drilling program, in LKA's opinion, only superficially and inconclusively tested four of the six original drill targets identified by Kinross geologists during a geochemistry evaluation of the surface area adjacent to, and well beyond, the original Golden Wonder discovery. (See maps of permitted drill sites at: http://lkagold.com/golden-wonder-mine). All six of the original drill targets possess surface geochemistry similar to the original high-grade ore shoot that, during LKA's ownership, yielded over 141,000 ounces from an area measuring less than 10,000 square feet. Ore grades from commercial production (2000-2006) were 16.01 oz gold per ton. Upon resuming exploratory mining operations in the first quarter of 2009, LKA shipped twenty-nine bulk ore samples containing more than 4,900 ounces of gold with a net value, after processing, of over $5.1 million. Ore sales covered a substantial portion of LKA's exploration expenses to date. Investors are cautioned that LKA continues to generate substantial losses and additional funding and exploration work is required. A commercially viable ore reserve has yet to be established and there can be no assurance of success.
Safe Harbor Statement
Any views or opinions expressed in this press release are exclusively those of LKA management and do not represent Kinross' assessments or conclusions. LKA's plans to resume Golden Wonder production are subject to a number of conditions including, but not limited to, favorable geology, successful exploration efforts, favorable financing terms/availability, permits, government regulation, gold prices, market conditions, etc. Investment in LKA must be considered highly speculative. Mining and related activities are inherently high-risk endeavors and there can be no assurance that LKA will be successful. Forward-looking statements in this release are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995 and the Bespeaks Caution Doctrine. Investors are cautioned that the Company continues to generate substantial losses and additional funding and exploration work is required. A commercially viable ore reserve has yet to be established.
Riverview Capital Enterprises
Jonathan Barkman, President
SOURCE LKA Gold Incorporated