Business
CanAlaska Executes $9 Million Thompson Nickel Deal
Vancouver, British Columbia--(Newsfile Corp. - May 4, 2020) - CanAlaska Uranium Ltd. (TSXV: ...
About this update from Canalaska Uranium Ltd
[{"type":"text","content":"CanAlaska Executes $9 Million Thompson Nickel DealOption-JV Signed with Fjordland Exploration on Two Large Properties; Focus on Large Sulphide Nickel Targets with Tier-1 PotentialVancouver, British Columbia--(Newsfile Corp. - May 4, 2020) - CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) (\"CanAlaska\" or the \"Company\") is pleased to announce that it has entered into an option agreement with Fjordland Exploration Inc. (\"FEX\"), subject to regulatory approval, which allows FEX to earn up to an 80% interest in CanAlaska's 100%-owned North Thompson Nickel Project in Manitoba, Canada (the \"Project\") for exploration expenditures of $9M, 8.5M common FEX shares, and other considerations.Figure 1: CanAlaska's Thompson Nickel project is located 25km north of Thompson, ManitobaTo view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/2864/55278_8ad4905cc4de39b2_001full.jpgFEX may earn up to an 80% interest in the Project by undertaking work and payments in three defined earn-in stages as shown in Table 1. During Stage 1 and Stage 2 of the option agreement, CanAlaska will receive fees as operator of the Project. The structure and content of the underlying joint venture agreement and Net Smelter Return (NSR) royalty has been agreed, and form part of the executed option agreement.FEX will issue to the Company a further 10,000,000 common shares in FEX upon completion of a positive Feasibility Study for the Project provided that FEX has earned, at a minimum, a 70% interest as outlined in Stage 2 of the option.Table 1: Summary of Option StagesOption StageFEX Interest Earned (%)Cash Payment ($)FEX Shares IssuedExploration Expenditure ($)Timeline (months)On signing25,0001,000,000On TSXV ApprovalStage 1491,500,00024Stage 22150,0001,500,0002,500,00024Stage 31075,0006,000,0005,000,00024Totals80150,0008,500,0009,000,00072Feasibility Bonus10,000,000 After successful completion of either of Stage 1 or Stage 2 of the option agreement, and if FEX elects to not enter the next stage or in the case of completion of Stage 3, a joint venture will be formed and the parties will either co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula. If either of the Company or FEX dilute down to less than 10% Project interest, the party diluting will relinquish its rema...