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WestKam Announces Proposed Sale of Bonaparte Property and Acquisition of New Claims
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 5, 2017) - WestKam Gold Corp. (TSX VENTURE:WKG) (the "Company" or "WestKam") announces that it has entered into
About this update from Big Bear Gold Corp.
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 5, 2017) - WestKam Gold Corp. (TSX VENTURE:WKG) (the \"Company\" or \"WestKam\") announces that it has entered into a letter of intent (\"LOI\") dated January 4, 2017 with MX Gold Corp. (TSX VENTURE:MXL) (\"MX Gold\"), pursuant to which it has agreed to sell all of its interest in its Bonaparte property to MX Gold in consideration for 40 million shares of MX Gold (which will represent an approximate 19.7% interest in MX Gold on a non-diluted basis, assuming MX Gold does not issue any additional securities prior to closing). The Company intends to dividend a substantial number of the MX Gold shares to its shareholders, on a pro rata basis, subject to compliance with all applicable laws. This transaction is considered a Non Arm's Length transaction under the policies of the TSX Venture Exchange (the \"TSXV\") in that the Company's director, Mr. Akash Patel, is also a director and executive officer of MX Gold. The LOI contemplates a 30 day due diligence period during which MX Gold will verify information regarding the Bonaparte property and the Company will conduct standard due diligence on MX Gold. The sale of the Bonaparte property is further conditional upon the entering into of a definitive agreement within 60 days, with terms and conditions acceptable to both parties. Effective upon signing of the definitive agreement, the Company has agreed to pay a break fee of $37,500 (payable within 6 months of termination, in cash or in common shares at the Company's discretion) in the event this transaction does not close due to the Company being unable to satisfy one or more of its closing conditions. In addition, effective upon signing of the definitive agreement, MX Gold has agreed to reimburse the Company for costs it has incurred in relation to this transaction, up to a maximum amount of $75,000. As previously announced (refer to the Company's December 28, 2016 news release), the Company optioned a 5% interest in the Bonaparte property to MX Gold in consideration for MX Gold incurring a minimum of $650,000 in exploration expenditures on the property by December 31, 2016. The Company is awaiting evidence that qualifying expenditures have been incurred by the deadline in order to determine whether MX Gold has earned its 5% interest in the property. The parties have agreed that if MX Gol...