- Fjordland Exploration (TSXV:FEX) has received approval from the TSX Venture Exchange to acquire a stake in the North Thompson Nickel Project
- Under an agreement with CanAlaska Uranium, the company may acquire up to an 80 per cent interest in the Manitoba-based property
- In line with the deal, Fjordland has paid C$25,000 in cash to CanAlaska, along with on million common shares
- To secure the full 80 per cent stake, the company will need to pay $9 million in exploration expenses, pay CanAlaska $150,000 and issue 8,500,000 common shares over the next six years
- Fjordland Exploration (FEX) is down 7.14 per cent and is trading at 6.5 cents per share
Fjordland Exploration (TSXV:FEX) has received approval from the TSX Venture Exchange to acquire a stake in the North Thompson Nickel Project.
The agreement was executed on May 5 this year with Vancouver-based CanAlaska Uranium, which currently owns 100 per cent of the project. Under the terms of the deal, Fjordland may acquire up to an 80 per cent interest in the project over the next six years.
This includes a total of C$9 million in exploration expenses on Fjordland’s behalf, as well as a cash payment totalling $150,000 and the issuance of 8.5 million common shares. These amounts will be issued in instalments, with each one securing an additional stake in the North Thompson Nickel Project.
With regulatory approval now secured, Fjordland has issued its first instalment to CanAlaska of $25,000 in cash and one million common shares.
Located roughly 25 kilometres from the city of Thompson in Manitoba, the project hosts a number of high-grade nickel drill intersections that were identified during earlier exploration activities. Fjordland says that these discoveries warrant further analysis with more modern geophysical surveys and drill programs.
The North Thompson Project covers much of the north and north-western extension of the Thompson Nickel Belt, which is considered to be the fifth largest sulphide nickel belt in the world.
In the original announcement on May 5, Richard Atkinson, President and CEO of Fjordland Exploration, noted that since 1961 the Thompson, Birchtree and Pipe deposits, which sit within the Thompson Nickel Belt, have produced more than 150 million tonnes of nickel sulphide ore grading 2.32 per cent nickel and 0.16 per cent copper.
“The North Thompson Nickel Belt project meets Fjordland’s long-standing exploration criteria in that the high-quality work done to date clearly demonstrates large scale, drill ready targets in a well-documented geologic setting,” he said.
Separately, Fjordland has issued a total of 2.23 million incentive stock options to certain directors, officers and contractors under the company’s stock option plan. These options are exercisable at a price of seven cents for a period of five years.
Fjordland Exploration (FEX) is down 7.14 per cent and is trading at 6.5 cents per share at 3:12pm EDT.