The two parties will enter into a definitive option and joint venture agreement subject to Noram and Western completing their respective due diligence and receiving board and regulatory approvals.
As per the deal, Noram has an exclusive option to earn complete stake in Kokanee property, with a final payment due in June 2014, and will grant to Western a sub-option to earn a 50% share in the property.
Western will be required to complete each of the following earn-in stages in order to exercise the Earn-in Option and acquire a 50% interest in the property.
Upon completion of all of the earn-in stages, and subject to Noram acquiring a 100% right, title and interest in and to the property pursuant to the terms of the Kokanee Option Agreement, Western will be deemed to have exercised the earn-in pption and to have earned a 50% right, title and interest in and to the property.
Western will also form a joint venture with Noram pursuant to the terms of a 50/50 joint venture deal to be entered into at the relevant time.
