- CanAlaska Uranium Ltd. (CVV) signs a letter of intent (LOI) with Basin Energy Limited to earn an 80 per cent interest on the North Millennium, Geikie, and Marshall projects
- Basin Energy may earn up to an 80 per cent interest by taking on work and milestone payments in 40, 60, and 80 per cent options on each project
- CanAlaska will also enter into an agreement where it will be the operator of the initial work program on the Marshall project and is entitled to charge an operator fee
- Basin Energy also has the option to acquire a 100 per cent interest in the Marshall project subject to similar terms as the aforementioned options
- CanAlaska Uranium Ltd. (CVV) is up 5.68 per cent trading at $0.465 per share as of 12:15 p.m. EST
CanAlaska Uranium (CVV) has signed a letter of intent with Basin Energy Limited.
Under the terms of the agreement, Basin Energy can earn an 80 per cent interest on the North Millennium, Geikie, and Marshall projects by taking on work and milestone payments for 40, 60, and 80 per cent interest options on each project.
The projects are located in the Eastern Athabasca Basin in Saskatchewan.
Basin Energy is required to pay CanAlaska AU$41,666.66 in cash per project and issue 6.66 per cent worth of ordinary shares for the 40 per cent option.
Basin Energy can move to the 60 per cent option by drawing AU$2.5 million in exploration expenditures per project.
It can then move to the 80 per cent option by issuing a further 2.25 million ordinary shares per project and incurring an additional AU$5 million in exploration expenditures per project.
CanAlaska will be the operator of the projects through the following 60 per cent option threshold and charge an operator fee.
CanAlaska will also enter into an agreement where it will be the operator of the initial work program on the Marshall project.
Basin Energy is obligated to keep and maintain the North Millennium and Geikie claims in good standing for a minimum period of one year.
Basin Energy will have the deciding vote on all expenditures to be incurred on the claims during the term of the agreement.
An area of mutual interest will be established that extends two kilometres from the boundary of the claims.
Basin Energy also has the option to acquire a 100 per cent interest in the Marshall project subject to similar terms as the 20, 40, and 60 per cent options.
The total value of the deal is approximately AU$15 million if certain terms are met.
CanAlaska Uranium Ltd. (CVV) is up 5.68 per cent trading at $0.465 per share as of 12:15 p.m. EST.