- CanAlaska Uranium (CVV) has entered into a letter of intent to option its projects in the Athabasca Basin to Terra Uranium
- Terra Uranium will earn up to an 80 per cent interest in CanAlaska’s Waterbury East and McTavish projects, and up to a 20 per cent interest in the Waterbury South project
- Terra is in the process of undergoing an initial public offering and is concurrently listing on the Australian Securities Exchange
- CanAlaska Uranium is engaged in the exploration of uranium, nickel, and diamond properties
- CanAlaska Uranium (CVV) is currently down 1.47 per cent, trading at $0.67 per share
CanAlaska Uranium (CVV) has entered into a letter of intent to option its projects in the Athabasca Basin to Terra Uranium.
The transaction will allow Terra Uranium, a private Australian company, to earn up to an 80 per cent interest in CanAlaska’s Waterbury East and McTavish projects, and up to a 20 per cent interest in the Waterbury South project.
To earn the 80 per cent interest in Waterbury East and McTavish, Terra Uranium will undertake work at the properties and make payments in three earn-in stages on each project.
Terra is in the process of undergoing an initial public offering and is concurrently listing on the Australian Securities Exchange (ASX).
Cumulatively, Terra may earn an initial 40 per cent interest in the projects by paying CanAlaska A$100,000 cash and issuing 12 per cent worth of its common shares once it has been listed on the ASX.
CanAlaska will retain a 2.25 per cent net smelter return (NSR) royalty on all products from the projects within 36 months of the listing date.
After completing the 20 per cent option of Waterbury South, Terra and CanAlaska will form a joint venture to co-contribute to the project.
An area of mutual interest will be established that extends two kilometres from the boundary of the claims.
Cory Belyk, CanAlaska CEO, commented,
“This significant investment by Terra will allow CanAlaska to achieve its objective of being a hybrid explorer and project generator by moving these projects toward discovery and preserving up-side without diluting current shareholders.”
CanAlaska Uranium is engaged in the exploration of uranium, nickel, and diamond properties. The company currently holds interests in approximately 214,000 hectares in the Athabasca Basin in Saskatchewan.
CanAlaska Uranium (CVV) is currently down 1.47 per cent, trading at $0.67 per share as of 1:28 pm ET.