CanAlaska Partner to Spend AUD$5M for 60% of Two Uranium Projects in the Athabasca Basin Terra Uranium has Staged Option to Earn up to 80% Interest in McTavish and Waterbury East Projects, subject to Resource definition
CanAlaska Partner to Spend AUD$5M for 60%
of Two Uranium Projects in the Athabasca
Basin
Terra Uranium has Staged Option to Earn up to 80% Interest in McTavish and Waterbury East
Projects, subject to Resource definition
Focus on High-Grade Eastern Athabasca Uranium Discovery
Vancouver, British Columbia--(Newsfile Corp. - January 19, 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 Terra Uranium Limited ("Terra"), an Australian
public limited corporation, and Terra's wholly-owned Canadian subsidiary Terra Uranium Canada
Limited, to allow Terra to earn up to an 80% interest in CanAlaska's 100%-owned Waterbury East and
McTavish projects. These projects total 4,202.21 hectares in the Eastern Athabasca Basin in
Saskatchewan, Canada (the "Projects") (Figure 1).
Figure 1: McTavish and Waterbury East Project Locations
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/2864/110736_36f00999b477fa03_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, milestone payments to CanAlaska and resource definition in three defined earn-in
stages on each project as set out below:
Terra may earn an initial 40% interest ("40% Option") in each of the projects by paying the
Company AUD$37,500 cash per project and issuing 9% worth of ordinary shares in Terra's capital
structure as at listing on the Australian Securities Exchange ("ASX") by March 31, 2022 per
project.
Terra may earn an additional 20% interest ("60% Option") in each of the projects by paying a
further AUD$200,000 per project and incurring AUD$2,500,000 in exploration expenditures within
18 months of the ASX listing date per project.
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 any of the claims, within 36 months of the ASX listing date.
CanAlaska will be Operator of the projects through the 60% Option threshold and charge an operator fee
to Terra.
The POA envisages conversion to a Joint Venture. Under the terms of the POA, after successful
completion of either of the 40% Option or 60% Option stages of the agreement, and where Terra elects
to not enter the next respective option stage as applicable, or on successful completion of the 80%
Option 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 project. If the 80% Option NSR of 2.25% had
been previously granted to CanAlaska, CanAlaska would not be entitled to this 2.0% NSR provision on
dilution to 10% interest.
An area of mutual interest has been established that extends two kilometres from the boundary of the
claims.
Under the terms of the POA, if the Conditions Precedent are not met or if Terra elects to terminate prior
to exercise of the 40% Option, a break fee of AUD$12,500 per project is due to CanAlaska.
First Programs
The parties have established a Joint Technical Operating Committee ("JTOC") under the terms of the
POA to discuss exploration and development strategies, review and comment on programs and budgets
submitted by the Operator, 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 Terra Uranium. The preliminary work programs and
budgets for each project have been laid out for the next 2 years. Once the 40% Option threshold has
been met, it is anticipated the first exploration programs under the POA with Terra will be conducted in
early 2022.
About Terra Uranium Ltd and Terra Uranium Canada Limited
Terra Uranium Ltd is an Australian public limited corporation that is in the process of undergoing an
initial public offering and concurrent listing on the Australian Securities Exchange ("ASX"). The POA
agreements are subject to a number of Conditions Precedent, including that Terra has received
conditional approval from the ASX to be listed on the ASX and raising sufficient funds to carry out the
programs
Terra Uranium Canada Limited is a wholly-owned Canadian subsidiary of Terra Uranium Ltd,
incorporated in Saskatchewan, Canada.
CanAlaska CEO, Cory Belyk, comments,
"Completion of the definitive agreements with Terra Uranium
represents significant funding for exploration on the highly prospective Waterbury East and McTavish
projects in the Eastern Athabasca Basin, without dilution of CanAlaska shareholders interest in our
core properties. We look forward to working closely with Terra and its management team toward a
common goal of tier 1 uranium deposit discovery."
Other News
The Company has just commenced drilling on its 100% owned Waterbury South project and is currently
undertaking
a
detailed Stepwise Moving Loop Time Domain Electromagnetic (TDEM) Survey on its
West McArthur project, in advance of the planned summer drill program.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/110736