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Fjordland Announces Recapitalization, Voisey's Bay Option Agreement, 2017 Exploration Programs and Financing
Vancouver, British Columbia--(Newsfile Corp. - June 5, 2017) - Fjordland Exploration Inc. (T...
About this update from Fjordland Exploration Inc.
[{"type":"text","content":"Fjordland Announces Recapitalization, Voisey's Bay Option Agreement, 2017 Exploration Programs and FinancingVancouver, British Columbia--(Newsfile Corp. - June 5, 2017) - Fjordland Exploration Inc. (TSXV: FEX) announces it is proceeding with a share consolidation, on the basis of five (5) old common shares for one (1) new common share (the \"Consolidation\").Fjordland reports it has entered into a Memorandum of Understanding (\"MOU\") with Commander Resources Ltd. (\"Commander\") whereby Fjordland has been granted a series of options to earn an additional 85% interest in the South Voisey's Bay nickel-cobalt project (\"SVB\") thereby bringing its interest to 100%. The MOU is subject to the approval of the TSX Venture Exchange (TSXV).Fjordland may exercise its option in three stages as summarized below.Earn-InOptionsDate for CompletionOption PaymentPost-Consolidation SharesExploration and Development ExpendituresFirst Option20%TSX-V Approval Date(as defined below)$ -200,000$ -October 31, 2017--$600,000(4)Second Option (40%)1st anniversary of Approval Date (1)$ 10,000250,000-2nd anniversary of Approval Date$ 15,000300,000-3rd anniversary of Approval Date$ 25,000350,000-October 31, 2021$ 40,000400,000$ 2,400,000Third Option (25%)October 31, 2024$200,0003,000,000$5,000,000TOTAL$ 290,0004,500,000$ 8,000,000 Upon Fjordland vesting a 100% interest, Commander will be granted a 2% NSR. Fjordland will retain the right to buy one-half of the NSR for $5 million cash or in the alternative a cash payment of $2.5 million plus the issuance of post consolidation shares having a fair market value of $2.5 million.Upon commencement of commercial production, Commander will receive an advance royalty payment of $10 million.The SVB property is located in central Labrador and covers part of the Pants Lake Intrusion which is a nickeliferous mafic plutonic complex which shares many similarities with the Voisey's Bay Intrusive Complex. Geophysical surveys carried out in late 2014 have outlined a strong horizontal conductor plus four strong sub-vertical conductors. These are considered to be high priority drill targets and are collectively referred to as the Sandy target.Commander has recently completed the staking of additional 3390 ha.of claims contiguous to the pre-existing 4260 ha.claim group. Mineral tenure now under management has increased 74% t...