Dec 24 2015
Kivalliq Energy Corporation and Roughrider Exploration Limited ("Roughrider") today announced their mutual agreement to amend the Option Agreement for the Genesis Property such that Roughrider will pay Kivalliq the sum of $400,000 Canadian immediately in exchange for a one-year extension to all phases of the agreement, and a commensurate reduction in minimum exploration expenditures.
Details of the planned amendments to the Roughrider-Kivalliq option agreement include the following key points:
- Roughrider (the Optionee) will pay Kivalliq (the Optionor) the sum of $400,000 Canadian on signing of the amendment.
- The Phase One period for Roughrider to complete its obligations to earn 50%, as per the Roughrider-Kivalliq Option Agreement is extended by a full year from August 31, 2016, to August 31, 2017, except for the payment of 1,969,828 REL shares to Kivalliq which, consistent with the Option Agreement, will remain due by August 31, 2016.
- Based upon an approved budget and work plan, Kivalliq agrees to fund $400,000 of exploration work on the Genesis Property between December 2015 and April 2016. If this exploration work is not completed on or before August 31, 2016, future cash / share payments and expenditures required by Roughrider will be reduced by 15%, while the unspent portion of Kivalliq's $400,000 exploration work commitment remains as an exploration spend commitment in 2016.
- Roughrider's minimum Phase One exploration expenditures are reduced by $400,000.
- The subsequent two year period in which Roughrider, at its option, can increase its share in the Genesis Property from 50% to 85% is also extended by a year from August 31 2018 to August 31 2019.
Exploration conducted on the Genesis Property during 2014 and 2015 by Roughrider and Kivalliq has successfully demonstrated the existence of numerous high priority targets for basement hosted uranium in the previously under-explored terrain to the east of the Athabasca Basin. The companies plan to continue refining and upgrading existing targets while still seeking new ones throughout this large landholding.
A new technical study just being completed by Condor Consulting of Lakewood Colorado, recognized experts in the field of airborne electromagnetics, has produced new detailed interpretations of airborne geophysical targets at Genesis. This review is close to completion and will be reported on after the results have been analyzed and interpreted.
QA/QC
Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person under National Instrument 43-101 has reviewed and approved the technical information contained in this release.