Fjordland to acquire majority stake in CanAlaska’s North Thompson nickel project
Mining - Following the execution of a letter of intent back in February, CanAlaska Uranium (TSXV: CVV) and Fjordland Exploration (TSXV: FEX) entered this week into an option agreement which allows the latter to earn up to an 80% interest in CanAlaska’s North Thompson nickel project in Manitoba, Canada.
In a press release, the companies involved in the transaction said that to go ahead with it, the buyer has to incur in exploration expenditures of $9 million and issue 8.5 million common FEX shares. Other considerations include the payment of a feasibility bonus that requires Fjordland to issue 10 million common shares upon completion of a positive feasibility study.
The work commitments and payments are to be done in three defined earn-in stages. During Stage 1 and Stage 2 of the option agreement, CanAlaska will receive fees as the operator of the project.