FEX will to earn up to an 80% interest in North Thompson Nickel Project, in exchange for $9m in exploration expenditures and other considerations
CanAlaska signs option agreement for Thompson Nickel project. (Credit: Pixabay/aymane jdidi)
Canada-based CanAlaska Uranium has signed an option agreement with Fjordland Exploration (FEX), for its North Thompson Nickel Project in Manitoba, Canada.
Under the transaction agreement, FEX will to earn up to an 80% interest in North Thompson Nickel Project, in exchange for $9m in exploration expenditures and other considerations.
FEX would earn majority interest in the project by undertaking work and payments in three earn-in stages, where CanAlaska will receive fees as operator of the project during the Stage 1 and Stage 2 of the option agreement.
CanAlaska president Peter Dasler said: “I wish to thank both teams for progressing this new project deal during these difficult times. We all remain committed to advancing the project as we believe that a significant new discovery is possible.
“The added bonus to shareholders is the location, with excellent infrastructure in this area, and the timeliness of significant new interest in nickel production for battery and clean energy requirements.”
North Thompson Nickel project is located approximately 25km from the city of Thompson
The North Thompson Nickel project contains a series of high-grade nickel drill intersections from historical work that warrant follow-up with modern geophysics and drilling.
The project is located approximately 25km from the city of Thompson, Manitoba, where existing Tier-1 mines and nickel processing facilities are owned and operated by Vale.
Under the transaction, FEX will issue 10,000,000 common shares to the company, 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.
Once the either of stage 1 or stage 2 of the option agreement is completed, and if FEX does not choose to enter the next stage or in the case Stage 3 is completed, a joint venture will be formed and the parties will either co-contribute or dilute.
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.