The junior explorer said that it currently has $US203,438 in cash and has to raise additional funds by the end of this month to execute its business plan.

Cheetah said if it was unable to do this, it would not be able to meet its obligations as they become due and may be forced to scale down or perhaps even cease its operations.

In a bid to remain operating, the company has signed a subscription agreement with Canada’s Kepis & Pobe Investments under which Kepis will acquire 90% of Cheetah's British Columbia subsidiary.

Kepis will also help Cheetah to settle about $US15 million in debts and make an additional $10 million contribution to the company's capital by December 31, 2008.

The subscription agreement is subject to several conditions including Kepis completing financing of $18 million, the provision of audited consolidated financial statements of Cheetah British Columbia and completion of satisfactory due diligence.

Kepis will also take on the $7.55 million debt that Cheetah owes to Macquarie Holdings as partial consideration for its subscription for Cheetah BC shares.

Cheetah said should the agreement with Kepis be completed as planned, the explorer plans to over the next 12 months use all available funds to carry out exploration and development wok on the five licences, which cover an area of about 8.3 million acres.

These include $5 million in geological and seismic in PPL 246 and PRL 13 that will be used to identify drilling prospects and targets and geological surveys on PPL 250, 245, 249 and 252 at a cost of about $1 million.

The company also plans to carry out spot surveys comprising selective geological sampling consisting of a review of all available seismic and geological data accumulated on PPL 249, 250 and 245.