Click here to close now.

SYS-CON MEDIA Authors: David Sprott, Liz McMillan, Pat Romanski, Elizabeth White, tru welu

News Feed Item

Kivalliq Partners With Westham to Explore Genesis Property in Northeastern Saskatchewan

VANCOUVER, BC--(Marketwired - May 21, 2014) - Kivalliq Energy Corporation ("Kivalliq") (TSX VENTURE: KIV) today announced the signing of a Letter of Intent "LOI" setting out the terms of a proposed transaction between Kivalliq and Westham Resources Corp. (TSX VENTURE: WHR) ("WHR") a Vancouver, Canada, based capital pool company, related to Kivalliq's Genesis Property in northeastern Saskatchewan, Canada.

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.

Exploration efforts will focus on near surface, basement-hosted, structurally controlled uranium targets analogous to the Millennium, Roughrider and Eagle Point deposits of the nearby Athabasca Basin. Data integration and interpretation is underway to prioritize exploration targets and refine budgets for future exploration programs.

"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," stated Kivalliq's CEO, Jim Paterson. "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."

Proposed Transaction Terms
Upon signing of the Definitive Agreement, Westham can acquire an 85% interest in the Genesis Property by executing the following:

Upon closing of the Proposed Transaction: Westham must make a cash payment to Kivalliq in the amount of CDN$125,000 and issue to Kivalliq 10% of the issued and outstanding shares of WHR on a post-transaction/post-concurrent financing basis.

To earn a 50% interest: By August 31, 2016, Westham must make an additional CDN$175,000 cash payment (CDN$300,000 in total), spend an aggregate of CDN$2.5 million on exploration (CDN$1 million prior to December 31, 2014) and issue to Kivalliq a second tranche of WHR shares equal to the number of shares issued to Kivalliq upon closing of the Proposed Transaction.

To earn an 85% interest: By August 31, 2018, Westham must make additional cash payments, or an equivalent value in WHR shares, of CDN$250,000 (by August 31, 2017) and CDN$450,000 (by August 31, 2018); and spend an additional CDN$2.5 million on exploration. Closing of the Proposed Transaction is subject to certain conditions, including but not limited to: signing of a Definitive Agreement; receipt of all necessary regulatory approval; approval of the WHR board of directors; and the closing a private placement concurrent with the Proposed Transaction of gross proceeds of not less than CDN$2,000,000.

Kivalliq director Dale Wallster will represent Kivalliq's interest by joining the board of directors of Westham. Kivalliq will act as project operator for the first two years of the agreement, with certain fees related to exploration program operatorship to be defined in the Definitive Agreement.

About the Genesis Property

The Genesis Property is comprised of 46 mineral claims totalling 491,154 acres (198,763 hectares), northeast of Saskatchewan's Athabasca Basin and along the prospective Western Wollaston Tectonic Domain. Kivalliq's 100% owned project commences 25 kilometres northeast of the Eagle Point uranium mine operated by Cameco Corporation and extends 90 kilometres to the northeast along this favourable geological and structural domain to the Manitoba border.

Until recently, Saskatchewan explorers have targeted uranium mineralization within the present day boundaries of the Proterozoic Athabasca Basin. Many of the high-grade resources identified are actually hosted by basement rocks underlying the basin sediments. Fission Uranium Corp.'s Patterson Lake South uranium discovery, in basement rocks outside the basin boundaries, has focused exploration interest toward near surface uranium occurrences in structurally favorable basement settings beyond the basin margins.

The Genesis Property covers basement rocks known to host uranium mineralization. Past exploration in the project area by Denison Mines Ltd., Hathor Exploration Ltd., Triex Minerals Corp., Uranerz Energy Corp., CanAlaska Uranium Ltd., and the geological surveys of Saskatchewan and Canada included lake sediment geochemical surveys, airborne geophysical surveys, geological mapping and prospecting. This historic work outlined over 30 uranium showings that include several uranium-bearing boulder trains. Kivalliq has undertaken extensive generative studies, based on this work and has highlighted eight target areas in favourable host geology that display multi-variant anomalism including combinations of geophysical conductors and/or existing lake sediment, boulder or outcrop uranium or indicator element geochemical anomalies. 

The eight target areas selected will be explored with a combination of airborne and ground geophysics, lake sediment sampling, soil sampling, mapping and prospecting. The intent is to complete this year's program through the summer and early autumn and to refine targets for a major follow-up drill program in early 2015. A large number of second order targets will remain available for later exploration. 

Maps showing the location of the Genesis Property and compiled historic regional data are available at: http://kivalliqenergy.com/uranium/genesis/

Jeff Ward, P.Geo, President of Kivalliq and a Qualified Person for Kivalliq, has reviewed and approved the publicly available scientific and technical information by previous exploration groups contained in this release.

About Kivalliq Energy Corporation

Kivalliq Energy Corporation (TSX VENTURE: KIV) is a Vancouver-based uranium exploration company holding Canada's highest-grade uranium resource outside of Saskatchewan's Athabasca Basin. Its flagship project, the 304,257 acre Angilak Property in Nunavut Territory, hosts the Lac 50 Trend with a NI 43-101 Inferred Resource of 2,831,000 tonnes grading 0.69% U3O8, totaling 43.3 million pounds U3O8. Kivalliq's comprehensive exploration programs continue to advance the Lac 50 Trend and demonstrate the "District Scale" potential of the Angilak Property.

Kivalliq's team of northern exploration specialists have forged strong relationships with sophisticated resource sector investors and Angilak Property partner Nunavut Tunngavik Inc. ("NTI"). Kivalliq was the first company to sign a comprehensive agreement to explore for uranium on Inuit Owned Lands in Nunavut Territory, Canada and is committed to building shareholder value while adhering to high levels of environmental and safety standards and proactive local community engagement.

On behalf of the Board of Directors

"Jim Paterson"

James R. Paterson, CEO
Kivalliq Energy Corporation

For further information about, Kivalliq Energy Corporation or this news release, please visit our website at www.kivalliqenergy.com or contact Investor Relations toll free at 1.888.331.2269, at 604.646.4527, or by email at [email protected]

Kivalliq Energy Corporation is a member of the Aurora Mineral Resource Group of companies, for more information please visit www.auroraresource.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain disclosures in this release constitute forward-looking statements that are subject to numerous risks, uncertainties and other factors relating to Kivalliq's operations as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements, including risks as to the completion of the plans and projects. Readers are cautioned not to place undue reliance on forward-looking statements. For disclosure related to the inferred resource for the Lac 50 Trend uranium deposit, please refer to Kivalliq's news release of March 1, 2013. Other than as required by applicable securities legislation, Kivalliq expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Cautionary Note Concerning Estimates of Inferred Resources:

This news release uses the term "inferred resources". Inferred resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Kivalliq advises U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When an enterprise builds a hybrid IaaS cloud connecting its data center to one or more public clouds, security is often a major topic along with the other challenges involved. Security is closely intertwined with the networking choices made for the hybrid cloud. Traditional networking approaches for building a hybrid cloud try to kludge together the enterprise infrastructure with the public cloud. Consequently this approach requires risky, deep "surgery" including changes to firewalls, subnets...
Move from reactive to proactive cloud management in a heterogeneous cloud infrastructure. In his session at 16th Cloud Expo, Manoj Khabe, Innovative Solution-Focused Transformation Leader at Vicom Computer Services, Inc., will show how to replace a help desk-centric approach with an ITIL-based service model and service-centric CMDB that’s tightly integrated with an event and incident management platform. Learn how to expand the scope of operations management to service management. He will al...
SYS-CON Events announced today that BMC will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BMC delivers software solutions that help IT transform digital enterprises for the ultimate competitive business advantage. BMC has worked with thousands of leading companies to create and deliver powerful IT management services. From mainframe to cloud to mobile, BMC pairs high-speed digital innovation with robust...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connecte...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for companies without hyper-scale resources. In his session at 15th Cloud Expo, David Cauthron, CTO and Founder of NIMBOXX, highlighted how a mid-sized manufacturer of global industrial equipment bridged the gap from virtualization to software-defined services, streamlining operations and costs while connect...
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
paradigm shifts in networking, to cloud and licensure, and all the Internet of Things in between. In 2014 automation was the name of the game. In his session at DevOps Summit, Matthew Joyce, a Sales Engineer at Big Switch, will discuss why in 2015 it’s complexity reduction. Matthew Joyce, a sales engineer at Big Switch, is helping push networking into the 21st century. He is also a hacker at NYC Resistor. Previously he worked at NASA Ames Research Center with the Nebula Project (where OpenSta...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the ...
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
EMC Corporation on Tuesday announced it has entered into a definitive agreement to acquire privately held Virtustream. When the transaction closes, Virtustream will form EMC’s new managed cloud services business. The acquisition represents a transformational element of EMC’s strategy to help customers move all applications to cloud-based IT environments. With the addition of Virtustream, EMC completes the industry’s most comprehensive hybrid cloud portfolio to support all applications, all workl...