CanAlaska Deals Three Uranium Projects in the Athabasca Basin Terra Uranium have Staged Option to Earn up to 80% Interest in Two Properties and up to 20% Interest in One Property Focus on High-Grade Eastern Athabasca Uranium Discovery
CanAlaska Deals Three Uranium Projects in
the Athabasca Basin
Terra Uranium have Staged Option to Earn up to 80% Interest in Two Properties and up to 20%
Interest in One Property
Focus on High-Grade Eastern Athabasca Uranium Discovery
Vancouver, British Columbia--(Newsfile Corp. - September 23, 2021) -
CanAlaska Uranium Ltd.
(TSXV:
CVV)
(OTCQB:
CVVUF)
(FSE:
DH7N
)
("CanAlaska" or the "Company") is pleased to
announce it has entered into a Letter of Intent ("LOI") with Terra Uranium Pty Ltd ("Terra"), an Australian
private limited corporation, to allow Terra to earn up to an 80% interest in CanAlaska's 100%-owned
Waterbury East and McTavish projects, and up to a 20% interest in CanAlaska's 100%-owned
Waterbury South project. These projects total 5,010 hectares in the Eastern Athabasca Basin in
Saskatchewan, Canada (the "Projects") (Figure 1).
Figure 1
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2864/97363_772d3b6e848a9a09_001full.jpg
Waterbury East and McTavish Projects
Terra may earn up to an 80% interest in each of the Waterbury East and McTavish projects by
undertaking work and payments in three defined earn-in stages on each project (tables 1 and 2).
Cumulatively, Terra may earn an initial 40% interest ("40% Option") in the projects by paying the
Company A$100,000 cash and issuing 12% worth of common shares at listing on the Australian
Securities Exchange ("ASX") by December 31, 2021. Cumulatively, Terra may earn an additional 20%
interest ("60% Option") in the projects by paying a further A$400,000 and incur A$5,000,000 in
exploration expenditures within 18 months of ASX approval date. Cumulatively, Terra may earn an
additional 20% interest ("80% Option") in the projects by delivering and filing a JORC compliant
resource of at least 30,000,000 pounds U
3
O
8
on any of the Waterbury East or McTavish claims, and
granting to the Company a 2.25% net smelter returns (NSR) royalty on all products derived from the
claims, within 36 months of ASX listing date. CanAlaska will be operator of the projects through the 60%
Option threshold and charge a 20% operator fee to Terra.
After successful completion of either of the 40% Option or 60% Option stages of the agreement, and if
Terra elects to not enter the final stage, a joint venture will be formed and the parties will co-contribute on
a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula. If either party dilutes to a
10% interest, the diluting party will automatically forfeit its interest in the respective project and in lieu
thereof will be granted a 2.0% net smelter returns (NSR) royalty on the respective property.
An area of mutual interest will be established that extends two kilometres from the boundary of the
claims.
Table 1: Summary of Option Stages for Waterbury East
Earned Interest
(%)
Cash (A$)
Shares (#)
Work
Commitment
(A$)
Royalty (NSR)
(%)
Timeline (mo.)
Operator*
LOI
Signing/Exclusivity
0
$12,500
0
$0
0
0
CanAlaska
40% Option
40
$37,500
6% of Terra at
List
$0
0
31-Dec-21
CanAlaska
60% Option
20
$200,000
0
$2,500,000
0
18
CanAlaska
Subtotal
60
$250,000
0
$2,500,000
0
18
N/A
80% Option
20
$0
0
30 Mlbs JORC
Resource**
2.25***
18
Terra
Total
80
$250,000
6% of Terra at
List
$2,500,000
36
*CanAlaska will be Operator for the 40% and 60% Option periods
**JORC compliant resource on any claims for Waterbury East and McTavish
***Due to CanAlaska on delivery of the JORC compliant resource
Table 2: Summary of Option Stages for McTavish
Earned
Interest (%)
Cash (A$)
Shares (#)
Work
Commitment
(A$)
Royalty (NSR)
(%)
Timeline (mo.)
Operator*
LOI
Signing/Exclusivity
0
$12,500
0
$0
0
0
CanAlaska
40% Option
40
$37,500
6% of Terra at
List
$0
0
31-Dec-21
CanAlaska
60% Option
20
$200,000
0
$2,500,000
0
18
CanAlaska
Subtotal
60
$250,000
0
$2,500,000
0
18
N/A
80% Option
20
$0
0
30 Mlbs JORC
Resource**
2.25***
18
Terra
Total
80
$250,000
6% of Terra at
List
$2,500,000
36
*CanAlaska will be Operator for the 40% and 60% Option periods
**JORC compliant resource on any claims for Waterbury East and McTavish
***Due to CanAlaska on delivery of the JORC compliant resource
Waterbury South Project
Terra may earn up to a 20% interest in the Waterbury South Project by undertaking work and payments
in one defined earn-in stage (Table 3). Terra may earn the 20% interest ("20% Option") by paying the
Company A$250,000 cash, issuing 6% worth of common shares at listing on the ASX (listing due by
December 31, 2021), and incurring A$1,500,000 in exploration expenditures within 12 months of ASX
listing date. CanAlaska will be operator of the project through the 20% Option and charge a 20%
operator fee to Terra.
After successful completion of the 20% Option stage of the agreement, a joint venture will be formed and
the parties will co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution
formula.
An area of mutual interest will be established that extends two kilometres from the boundary of the
claims.
Table 3: Summary of Option Stage for Waterbury South
Earned
Interest (%)
Cash (A$)
Shares (#)
Work
Commitment
(A$)
Royalty (NSR)
(%)
Timeline (mo.)
Operator*
LOI
Signing/Exclusivity
0
$12,500
0
$0
0
0
CanAlaska
20% Option
20
$237,500
6% of Terra at
List
$1,500,000
0
12
CanAlaska
Total
20
$250,000
6% of Terra at
List
$1,500,000
12
*CanAlaska will be Operator for the 20% Option period
About Terra Uranium Pty Ltd
Terra Uranium Pty Ltd is an Australian private limited corporation that is in the process of undergoing an
initial public offering and concurrent listing on the Australian Securities Exchange (ASX). It is a condition
of this transaction that Terra be listed on the ASX.
CanAlaska CEO, Cory Belyk, comments,
"CanAlaska is pleased to work with Terra Uranium, a
pending new Australian-listed player in the Basin, to help fund the next stage of exploration on these
highly prospective Eastern Athabasca uranium projects. 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."
Other News
The Company is currently drilling on its West McArthur Joint Venture Project in the 42 Zone discovery
area, a joint venture with Cameco Corporation. Denison Mines is currently drilling on the Company's new
Moon Lake South Joint Venture near Denison's Wheeler River Project.
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) holds interests in
approximately 214,000 hectares (530,000 acres), in Canada's Athabasca Basin - the "Saudi Arabia of
Uranium." CanAlaska's strategic holdings have attracted major international mining companies.
CanAlaska is currently working with Cameco and Denison at two of the Company's properties in the
Eastern Athabasca Basin. CanAlaska is a project generator positioned for discovery success in the
world's richest uranium district. The Company also holds properties prospective for nickel, copper, gold
and diamonds. For further information visit
www.canalaska.com
.
The qualified technical person for this news release is Nathan Bridge, MSc., P.Geo., CanAlaska's Vice
President, Exploration.
On behalf of the Board of Directors
"Peter Dasler"
Peter Dasler, M.Sc., P.Geo.
President
CanAlaska Uranium Ltd.
Contacts:
Cory Belyk, Executive VP and CEO
Tel: +1.604.688.3211 x 306
Email:
Peter Dasler, President
Tel: +1.604.688.3211 x 138
Email:
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Forward-looking information
All statements included in this press release that address activities, events or developments that the
Company expects, believes or anticipates will or may occur in the future are forward-looking
statements. These forward-looking statements involve numerous assumptions made by the Company
based on its experience, perception of historical trends, current conditions, expected future
developments and other factors it believes are appropriate in the circumstances. In addition, these
statements involve substantial known and unknown risks and uncertainties that contribute to the
possibility that the predictions, forecasts, projections and other forward-looking statements will prove
inaccurate, certain of which are beyond the Company's control. Readers should not place undue
reliance on forward-looking statements. Except as required by law, the Company does not intend to
revise or update these forward-looking statements after the date hereof or revise them to reflect the
occurrence of future unanticipated events.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/97363