In exchange, Bayswater will issue 2 million common shares to CanAlaska and offer a 2.5% net smelter returns royalty in the project.
CanAlaska had the right to earn a 70% stake in the project. The deal however facilitates a transaction where Bayswater can sign an agreement to sell the property to Nu Nova Energy.
The sale of the property, which is subject to TSX-V approval, is expected to be completed within one month.
CanAlaska Uranium president Peter Dasler said: "We have been able to discuss the potential of the Collins Bay Extension project with a number of interested Asian based parties over the past 6 months.
"This transaction presents good upside to CanAlaska, and offers further investment interaction, while preserving our focus on our core projects of West McArthur and Cree East with our Japanese and Korean partners."
The company plans to restart drilling on its nearby NW Manitoba project where a drill program, using two diamond drills is anticipated this summer.