AMENDMENT TO LETTER OF INTENT
This Agreement and Amendment is made and entered into this 2nd day of February
1998, by and between Kennecott Canada Exploration, Inc., Kennecott Exploration
Company (collectively, "Kennecott") and La Teko Resources Ltd. ("La Teko").
WHEREAS, Kennecott and La Teko entered into that certain Letter of Intent dated
November 24, 1997, providing for the transfer of Kennecott's interests in the
Scheelite Dome and Mt. Distin properties; and,
WHEREAS, the parties now wish to amend certain provisions of such Letter of
Intent;
NOW, THEREFORE, in consideration of the premises, the parties agree as follows:
1. Paragraph 13 shall be amended so that it shall now read:
Each party shall bear its own costs for the negotiation and registration
of such Option Agreement. The parties shall fully close the Option
Agreement prior to March 31, 1998. La Teko shall have until February 27,
1998 to conduct due diligence on the projects. On or before February 27,
1998, La Teko shall give Kennecott written notice of its intent to close
the Option Agreement. If Kennecott does not receive such notice, the
Letter Agreement shall terminate automatically and, subject to VSE
approval, La Teko shall issue Kennecott 30,000 shares of its common shares
as a breakup fee. In the event that VSE approval is not forthcoming, La
Teko shall pay Kennecott double its direct expenses in relation to the
proposed transaction in cash. Thereafter, the parties will have no further
obligation to one another. If La Teko intends to close the Option
Agreement, La Teko agrees to reimburse Kennecott in cash for property
payments made at Scheelite Dome in January 1998.
2. The Mt. Distin project, and terms and conditions relating to the Mt. Distin
project, will no longer be included in the Letter of Intent.
The parties acknowledge that said Letter of Intent, as amended, is valid and in
full force and effect, and for such purposes as the parties originally intended.
Executed the day and year first set forth above.
KENNECOTT CANADA EXPLORATION, INC. LA TEKO RESOURCES LTD.
By: /s/ X.X. Xxxxxx By: /s/ Xxxxxx X. Xxxxxxx
KENNECOTT EXPLORATION COMPANY
By: /s/ X.X. Xxxxxx
