Canada-based Westward Explorations has entered into a letter of intent to acquire all of Sky Alliance Resources Guinee SA shares from its parent company Sky Alliance Resources Inc (SARI).
SARI will receive $1million in cash and 24.5 million of Westward common shares.
Upon completion of the transaction, Sky Alliance Resources Guinee SA will become a wholly-owned subsidiary of Westward and is to be re-named West African Iron Ore Corp.
SARI has so far injected about $3million in SAR Guinee in the form of loans from its directors.
SAR Guinee holds two iron ore permits in the Republic of Guinea – the Forécariah permit covering an area of 1,400 km2, and the Kerouane permit, an area of approximately 500 km2.