Kairiki Energy Limited
Perth, Mar 25, 2009 AEST (ABN Newswire) - Kairiki Energy Limited (ASX:KIK)(PINK:KAIRF) is pleased to advise that it has entered into term sheet agreements to farm out its minerals tenements, as outlined below, to third parties effective immediately. The third parties will earn a 90% interest in the mineral tenements by funding 100% of the cost of all the exploration work required to maintain the tenements in good standing with the Department of Mines and Petroleum. Kairiki will receive as consideration the following:
- 10% of the net proceeds on certain tenements up to a sum of A$250,000 and a 1% net smelter royalty thereafter; and
- for the remaining tenements, 10% of the net revenue after 5,000 ounces of gold has been produced.
These transactions, which are subject to executing farm-out agreements, will provide Kairki with a 10% free carry interest on its mineral tenements.
Contact
Laurie Brown
Managing Director
Kairiki Energy Limited
TEL: +61-8-9388-6711
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