49 North Resources Inc. (TSX: V.FNR, Stock Forum) said its subsidiary Allstar Energy Ltd. has struck a binding agreement with Westcore Energy Ltd. (TSX: V.WTR, Stock Forum) whereby Westcore will farm into Allstar’s Riverside lands near Leader, Sask.
Under the terms of the farm-in agreement, Westcore will complete a 3D seismic survey on the Riverside lands pursuant to which it will spend up to $1 million. Based on the information obtained from the seismic program, a drilling program will be planned for the Riverside lands.
The transaction is subject to the review and approval of the TSX Venture Exchange, 49 North said in a press release.
Trading at $2.39 on Wednesday, 49 North has a market cap of $36.17 million, based on 15.1 million shares outstanding. The 52-week range is $4.02 and $2.05.