Kivalliq Energy Corporation (TSXV:KIV) signed a Letter of Intent with Westham Resources Corp. (TSXV:WHR) for exploration on Kivalliq’s Genesis Property in northeastern Saskatchewan, Canada. Subject to conditions, WHR can acquire 85% interest in Kivalliq’s Genesis Property in exchange for 20% of the issued and outstanding shares of WHR on a post-transaction/post-financing basis, CDN$1 million in cash payments, and CDN$5 million in exploration expenditures over four years.

As quoted in the press release:

Subject to conditions to be set forth in a Definitive Agreement between Kivalliq and Westham, WHR can acquire 85% interest in Kivalliq’s Genesis Property in exchange for 20% of the issued and outstanding shares of WHR on a post-transaction/post-financing basis, CDN$1 million in cash payments, and CDN$5 million in exploration expenditures over four years. Upon acquisition of an 85% interest in Genesis by Westham, Kivalliq’s remaining 15% interest in the project will be carried through to completion of a bankable feasibility study and a recommendation from the board of WHR to proceed to commercial production. Kivalliq will be project operator for at least the first two years of the agreement.

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