Under the terms of the agreement, KEPCO will subscribe for a $8m placement in common shares of Strathmore, along with $2m project development allowance, which will be used for the phase one exploration and development of the Gas Hills properties.
On completion of first phase, KEPCO may enter into a second phase of the programme, to earn up to a 40% interest in the Gas Hills properties, with additional expenditure of $35m over the subsequent three years.
Strathmore will be the operator of the Gas Hills project, and will receive a management fee for overseeing the project during each year of Phase II.
