If the LoI leads to a definitive agreement, Westham will have an option to buy 85% interest in Kivalliq’s Genesis Property by paying 20% of its issued and outstanding shares, C$1m in cash and C$5m in exploration expenditures over four years.
Following the proposed deal, Kivalliq’s 15% stake in the project will be entitled to a bankable feasibility study and a recommendation WHR board to proceed to commercial production.
As per the deal, Kivalliq will be project operator for at least the first two years.
Kivalliq CEO Jim Paterson said: "We are very pleased to be working together with the Westham directors to close this transaction, as it will provide the shareholders of both Kivalliq and Westham the exposure to an exploration campaign in arguably the world’s most exciting uranium jurisdiction."
"Our common goal is to leverage Westham’s financial strength and the Kivalliq team’s considerable northern exploration and Saskatchewan uranium experience to make significant discoveries at the Genesis Property."
Located northeast of Saskatchewan’s Athabasca Basin, the Genesis Property is said to contain 46 mineral claims totaling 198,763 hectares.
In January 2014, Kivalliq staked 36 mineral claims totaling 362,789 acres along the prospective Western Wollaston Tectonic Domain.
