Westcore Energy Ltd. has entered into a binding letter agreement with 49 North Resources Inc. and its wholly-owned subsidiary, Allstar Energy Limited regarding the acquisition of a 100% working interest in the oil and gas properties of FNR and Allstar, in addition to the subsequent acquisition of all associated oil and gas property and equipment of FNR and Allstar.
Pursuant to the Letter Agreement, Westcore will obtain a 100% working interest in all of Allstar and FNR's oil and gas properties and title to all associated property and equipment for an aggregate purchase price of $3,000,000.
The purchase price payable under the Letter Agreement will be paid via the issuance upon closing of an aggregate of 15,000,000 common shares of Westcore at a price of $0.10 per share (after giving effect to a five-for-one consolidation of Westcore's common shares), in addition to the delivery of a promissory note in the aggregate principal amount of $1,500,000.
The Promissory Note will bear interest at a rate of 5% per annum, maturing on the date that is two years from the date of issuance and re-payable from the cashflows of operations. Upon repayment of all amounts outstanding under the Promissory Note, title to the associated property and equipment will be conveyed from Allstar and FNR to Westcore.