As per the agreement, WestCan will issue to CanAlaska, a total of 5% of the issued and outstanding common shares of the company and a further 5% on the day of one year completion of the agreement; and will spend CAD4.5m in exploration on the claims over a three year period, in order to earn a 50% participating interest in the project.
CanAlaska will also receive a 3% Yellowcake royalty. At any time following the formation of the 50% Joint Venture, WestCan may purchase a portion of the royalty by paying CanAlaska a consideration of CAD1m in cash for each 0.5% Yellowcake royalty increment, up to a maximum total purchase of 2.5% Yellowcake Royalty for a total consideration of CAD5m.
The Grease River property comprises 15 claims totaling 81,821 hectares, lying between 10 and 60km from the edge of the north rim of the Athabasca Basin, 50km northwest of Stony Rapids, Saskatchewan.
CanAlaska has discovered 24 uranium occurrences, one rare-earth element (REE) occurrence and one occurrence of REE plus uranium mineralization. The highest analytical result encountered from surface sample analysis on the property was 550,600ppm (55.06%) U3O8.
The primary focus of exploration at Grease River will be to drill test the Shearika Ridge uranium zone for a large tonnage intrusive hosted deposit. Historical trenches were found over a 600mt strike length within a zone 1,500mt long and up to 500mt wide, in which there are numerous sill-like bodies of white pegmatitic granite or alaskite, at the margins of a large granitic intrusion.
