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Fjordland Executes Thompson Nickel Option with CanAlaska Uranium
Vancouver, British Columbia--(Newsfile Corp. - May 5, 2020) -  Fjordland Exploration Inc...
About this update from Fjordland Exploration Inc.
[{"type":"text","content":"Fjordland Executes Thompson Nickel Option with CanAlaska UraniumVancouver, British Columbia--(Newsfile Corp. - May 5, 2020) -  Fjordland Exploration Inc. (TSXV: FEX) is pleased to announce that it has entered into a definitive option agreement with CanAlaska Uranium Ltd. Subject to regulatory approval, the Agreement allows Fjordland to earn up to an 80% interest in CanAlaska's 100%-owned North Thompson Nickel Project in Manitoba, Canada.As summarized below the agreement grants to Fjordland the option, over a 6-year period, to incur on a graduated basis, exploration expenditures of $9 million, make cash property payments aggregating $150,000 and issue periodically up to 8.5 million common shares.Option StageFEXInterest Earned (%)Cash Payment($)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 The underlying Joint Venture Agreement which forms part of the Option Agreement defines Feasibility Study, Net Smelter Return Royalty and Advance Royalty Payment. Upon completion of each stage of exploration Fjordland may elect to proceed to the next stage or in the alternative continue by means of a Joint Venture. In the event that Fjordland has earned a minimum 70% project interest and a Feasibility Study yields a NPV8 exceeding $100 million Fjordland will then issue to CanAlaska, as a bonus, an additional 10 million common shares. Pursuant to the Joint Venture, the parties may contribute to ongoing exploration expenditures on a pro -rata basis or elect to dilute to a 10% interest in which event their interest will convert to a 2% NSR. In the event that CanAlaska is the party granted the 2% NSR they will be entitled to an Advance Royalty Payment upon commercial production. This payment will be equal to 2% of the capital cost and will be capped at $10 million.North Thompson Nickel ProjectThe Project contains a series of high-grade nickel drill intersections from historical work that warrant follow-up with modern geophysics and drilling. There are also numerous untested targets. The area is approximately 25 kilometres from the city of Thompson, Manitoba, where there are existing Tier-1 mines and nickel processing facilities owned a...