CanAlaska Deals Three Uranium Properties for AUD$15M Basin Energy to Spend AUD$5M for 60% of Two Uranium Properties and 100% in One Uranium Property Staged Option to Earn up to 80% Interest in Geikie and North Millennium Projects, Subject to
CanAlaska Deals Three Uranium Properties for
AUD$15M
Basin Energy to Spend AUD$5M for 60% of Two Uranium Properties and 100% in One
Uranium Property
Staged Option to Earn up to 80% Interest in Geikie and North Millennium Projects, Subject to
Additional AUD$10M in Spend
Vancouver, British Columbia--(Newsfile Corp. - April 27, 2022) -
CanAlaska Uranium Ltd. (TSXV:
CVV) (OTCQB: CVVUF) (FSE: DH7N)
("CanAlaska" or the "Company") is pleased to announce it has
entered into Purchase Option Agreements ("POA") with Basin Energy Limited ("Basin Energy"), an
Australian public limited corporation, to allow Basin Energy to earn up to an 80% interest in CanAlaska's
100%-owned North Millennium and Geikie projects, and a 100% interest in CanAlaska's 100%-owned
Marshall project. These projects total 50,994.56 hectares in the Eastern Athabasca Basin in
Saskatchewan, Canada (the "Projects") (Figure 1).
Figure 1: North Millennium, Marshall and Geikie Project Location Map
To view an enhanced version of this graphic, please visit:
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North Millennium and Geikie Projects
Basin Energy may earn up to an 80% interest in each of the North Millennium and Geikie projects by
undertaking work and milestone payments in three defined earn-in stages on each project.
Basin Energy may earn an initial 40% interest ("40% Option") in each of the projects by paying the
Company AUD$33,333.33 cash per project and issuing 6.66% worth of ordinary shares in Basin
Energy's capital structure as at listing on the Australian Securities Exchange ("ASX") per project
within 180 days following execution of a definitive Property Option Agreement ("POA"). Basin
Energy will have the right to extend the 40% Option on a month-by-month basis for up to three (3)
consecutive months upon payment of an option extension fee of AUD$8,333 per month per project.
Basin Energy may earn an additional 20% interest ("60% Option") in each of the projects by
incurring AUD$2,500,000 in exploration expenditures per project within 24 months of the ASX
listing date.
Basin Energy may earn an additional 20% interest ("80% Option") in each of the projects by
issuing a further 2,250,000 ordinary shares in Basin Energy per project and incurring an additional
AUD$5,000,000 (total: AUD$7,500,000) in exploration expenditures per project within 48 months
of the ASX listing date and granting the Company a 2.75% net smelter returns ("NSR") royalty on
all products derived from the claims with a repurchase right of 0.50% NSR for AUD$500,000 at
any time commencing from the grant of the 2.75% NSR per project.
CanAlaska will be operator of the projects through the 60% Option threshold and charge an
operator fee.
Basin Energy will be obligated to keep and maintain the North Millennium and Geikie claims in
good standing for a minimum period of one year at all times during the term of the POA.
After successful completion of either of the 40% Option or 60% Option stages of the agreement, and if
Basin Energy 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 2.75% net smelter returns (NSR) royalty on the respective
property on all products derived from the claims with a repurchase right of 0.50% NSR for AUD$500,000
at any time commencing from the grant of the 2.75% NSR, except that, this provision will not apply to
CanAlaska if CanAlaska has already been granted the 2.75% NSR prior to diluting to a 10% interest.
Marshall Project
Basin Energy may acquire a 100% interest in the Marshall project by:
Paying the Company AUD$33,333.33 cash and issuing 6.66% worth of ordinary shares in Basin
Energy's capital structure as at listing on the ASX within 180 days following execution of a
definitive POA. Basin Energy will have the right to extend the payment period on a month-by-month
basis for up to three (3) consecutive months upon payment of an option extension fee of
AUD$8,333 per month.
Granting to the Company a 2.75% net smelter returns ("NSR") royalty on all products derived from
the claims with a repurchase right of 0.50% NSR for AUD$500,000 at any time commencing from
the grant of the 2.75% NSR.
CanAlaska and Basin Energy will enter into an agreement (the "Marshall Project Operator
Agreement"), on terms acceptable to both parties, pursuant to which Basin Energy will engage the
Company to be the operator of the initial AUD$1,500,000 work program on the property after
closing of the transaction. CanAlaska will be entitled to charge Basin Energy an operator fee.
An area of mutual interest will be established that extends two kilometres from the boundary of the North
Millennium, Geikie and Marshall claims.
First Programs
The parties will establish a Joint Technical Operating Committee ("JTOC") under the terms of the
Marshall Project Operator Agreement and the POAs relating to the North Millennium and Geikie projects
to discuss exploration and development strategies, review and comment on programs and budgets
submitted by CanAlaska, as the Operator under the agreements, review the progress and results of
activities conducted under the current programs and to discuss other issues in respect to the properties.
The final binding decision with respect to establishing programs to be carried out by the Operator
(including any changes or amendments to programs) shall be made by Basin Energy. The preliminary
work programs and budgets for each project will be laid out for the next 2 years. Once the 40% Option
threshold has been met with respect to the North Millennium and Geikie projects, and the 100% Option
has been fully exercised with respect to the Marshall project, it is anticipated the first exploration
programs under the respective property agreements will be conducted in the last half of 2022.
About Basin Energy Limited
Basin Energy Limited (ACN 655 515 110) is an Australian unlisted uranium exploration and
development company incorporated for the purpose of pursuing highly prospective uranium opportunities
globally. Basin Energy is backed by a high-quality board and management team with extensive uranium
project experience across multiple jurisdictions and a proven track record of value creation. The
completion of this transaction is conditional upon Basin Energy listing on the ASX which is indicatively
planned for early Q3-CY2022.
CanAlaska CEO, Cory Belyk, comments,
"Completion of these definitive agreements with Basin
Energy represents a very significant investment into CanAlaska's uranium portfolio providing multiple
discovery opportunities for CanAlaska shareholders on several of our new and highly prospective
Eastern Athabasca projects. It has been a real delight to work with the Basin Energy team to bring
these projects across another critical threshold. I look forward to the first Basin Energy funded
exploration programs."
Other News
The prior announced Purchase Option Agreements for the Waterbury East and McTavish projects have
expired.
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQB: CVVUF) (FSE: DH7N) holds interests in
approximately 300,000 hectares (750,000 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.
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