Noram Ventures Inc. (TSXV:NRM) has signed a Letter of Intent with Western Graphite Inc. for a sub-option and joint venture agreement on the Kokanee flake graphite property in Nelson, BC. Noram has an exclusive option to earn a 100% interest in the Property, with a final payment due in June 2014, and will grant to Western a sub-option to earn a 50% interest in the Property.
As quoted in the press release:
Grant of Earn-in Option:
Noram has an exclusive option to earn a 100% interest in the Property, with a final payment due in June 2014, and will grant to Western a sub-option (the “Earn-in Option”) to earn a 50% interest in the Property. In order to exercise the Earn-in Option and acquire a 50% interest in the Property, Western will be required to complete each of the following earn-in stages (each, an “Earn-in Stage”):
a. Pay to Noram, on or before the 5th business day following receipt of the TSX Venture Exchange approval, the sum of $75,000 payable through the issuance of such number of common shares of Western (the “Western Shares”) at a deemed price per Western Share to be mutually agreed upon by the Parties;
b. Fund all costs associated with metallurgical testing on the Property 2012 drill core and surface samples to be completed by SGS Lakefield;
c. Fund the next phase of resource definition drilling to be completed on the Property, and the sample analysis and metallurgical work to be carried out by SGS Lakefield in connection therewith;
d. Fund the preparation of a National Instrument 43-101 compliant resource estimate and technical report in respect of the Property, to be completed by a geological consultant who is independent of the Parties; and
e. Upon completion of the last of the Earn-in Stages set forth in paragraphs (a) through (d) above, pay to Noram the sum of $30,000 as a reimbursement of one-half of the cash payments made by Noram under the Option Agreement between Noram and Bruce Doyle dated June 8, 2012 (the “Kokanee Option Agreement”).
Formation of Joint Venture:
Upon completion of all of the Earn-in Stages and provided that Noram has been vested with a 100% right, title and interest in and to the Property pursuant to the terms of the Kokanee Option Agreement, Western will:
a. be deemed to have exercised the Earn-in Option and to have earned a 50% right, title and interest in and to the Property; and
b. form a joint venture with Noram pursuant to the terms of a 50/50 joint venture agreement to be entered into at the relevant time. Such joint venture agreement will provide that the cost of all future exploration expenditures to be undertaken on the Property will be borne equally by the Parties.
In the event that this LOI is not superseded by the Agreement on or before October 21, 2013, or such other date the Parties may agree to, the LOI will terminate.