Jan 24 2013
WestKam Gold Corp. (the "Company" or "WestKam") is pleased to announce that it has entered into an Option Agreement to acquire an additional 17% interest on its existing 7 claims of the 75%-owned Bonaparte Gold property (the "Property"), thereby increasing the Company's ownership position in the Property to 92%. These seven claims total 2,216-hectares (5,507 acres).
The Bonaparte Property consists of a total of 8 claims, representing 2,461-hectares (6,081 acres) and is located approximately 35 kilometres north of Kamloops, British Columbia and is accessible by paved and well-maintained gravel roads.
Under the terms of the Option Agreement, WestKam has the option to acquire its additional 17% interest by making a $150,000 cash payment to the Optionor on or prior to the first anniversary of the Closing Date, and to issue to the Optionor the following:
- 2,000,000 common shares on or prior to the Closing Date;
- 2,500,000 common shares on or prior to the first anniversary of the Closing Date; and
- 3,000,000 common shares on or prior to the second anniversary of the Closing Date.
The Company may make a one-time $500,000 lump sum cash payment to the Optionor in lieu of any remaining shares on or prior to November 1, 2013. The transaction is subject to TSX Venture Exchange approval
Shares for Debt Settement
The Company also wishes to announce that that it has arranged a debt settlement with certain creditors. The debt settlement will allow the Company to restructure approximately $238,845 in outstanding debt through the issuance of up to 1,592,300 common shares of the Company at a conversion of $0.15 per common share.
The debt settlement is subject to TSX Venture Exchange approval.