Niko Resources To Fund Vast Exploration Iraq Project

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
9MM
Description

To acquire an amount equal to 12% interest in Qara Dagh Block in Kurdistan region of Iraq.

Nikoresources (Kurdistan) Ltd., a subsidiary of Niko Resources Ltd., Calgary, (Toronto: NKO) has entered an encumbrance-for-financing agreement with Vast Exploration Inc., Calgary, (Toronto Venture: VST) in which Niko will earn an amount equal to 12% interest in the Qara Dagh Block in the Kurdistan region of Iraq in exchange for US$9 million in financing.

Vast will use the funds provided by Niko to pay expenses related to the deepening of the Qara Dagh well to 4,150 meters. Niko will additionally provide financing to Vast in regard to 34.78% of Vast's share of the cost of all operations going forward.

Vast will then have the obligation, in the event that a commercial discovery is made and produced, to pay Niko an amount equal to the net proceeds of sale associated with an undivided 12% interest in the Qara Dagh Block.

The Qara Dagh Block lies on trend with existing discoveries and is in the Zagros Fold Belt of northern Iraq, which contains several large fields including super-giant Kirkuk Field.