Vancouver, BC, December 22, 2015 -- Roughrider Exploration Limited (TSX-V: REL) ("Roughrider") and Kivalliq Energy Corporation (TSX-V: KIV) ("Kivalliq") -- today announced that they have mutually agreed to amend the Option Agreement for the Genesis Property such that Roughrider will be granted a $400,000 reduction in minimum exploration expenditures, and a one-year extension to all phases of the agreement, in exchange for a commensurate cash payment to Kivalliq. A $400,000 work program will commence on the Genesis Property in February 2016 that will consist of an airborne gravity survey. |
Roughrider's CEO Scott Gibson commented that "these amendments allow both companies the flexibility to maximize the value of a great partnership in a difficult market. Both Roughrider and Kivalliq come out ahead. Roughrider takes a big step closer to earning its initial 50% interest in the Genesis Property, while receiving an extension by a full year to August 31, 2017, and a reduction in Roughrider's exploration expenditure commitments to reach that milestone, and Kivalliq receives a significant cash injection."
Further details of the planned amendments to the Roughrider-Kivalliq option agreement include the following key points:
- Roughrider's minimum Phase One exploration expenditures are reduced by $400,000.
- The Phase One work program is extended by one year from August 31, 2016, to August 31, 2017, during which time Roughrider can achieve its 50% earn-in by completing its cash payment and work commitments. The payment of 1,969,828 REL shares to Kivalliq will remain due by August 31, 2016.
- Kivalliq agrees to fund a $400,000 2016 exploration program on Genesis, subject to Roughrider pre-approval of the budget and work plan. Should Kivalliq not complete this exploration program by August 31, 2016, Roughrider's ongoing payment and expenditure obligations under the Genesis option agreement will be reduced by 15% while the unspent exploration expenditure remains a commitment.
- The subsequent two year period in which Roughrider, at its option, can increase its share in the Genesis Property from 50% to 85% is also extended by a year from August 31, 2018 to August 31, 2019.
- Roughrider will pay Kivalliq the sum of $400,000 Canadian on signing of the amendment.
Exploration conducted on the Genesis Property during 2014 and 2015 by Roughrider and Kivalliq has successfully demonstrated the existence of numerous high priority targets for basement hosted uranium in the previously under-explored terrain to the east of the Athabasca Basin. The companies plan to continue refining and upgrading existing targets while still seeking new ones throughout this large landholding.
A geophysical and geological assessment of the Genesis airborne surveys has been carried out by Condor North Consulting, recognized experts in the field of integrated exploration. This asssessment will be reported on after the results have been reviewed.
David W. Tupper, P.Geo., V.P. of Exploration and a Qualified Person under National Instrument 43-101 has reviewed and approved the technical information contained in this release.
About Roughrider Exploration Limited
Roughrider's focus is exploring the 200,677 hectare (495,883 acre) Genesis uranium project located in the Wollaston-Mudjatik geological trend extending northeast from Saskatchewan's Athabasca Basin. Roughrider has the option to earn an 85% interest in Genesis from Kivalliq Energy Corporation.
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