CanAlaska Signs Letter Of Intent On Cree East Project Nexus has Staged Option to Earn up to 75% Interest in the Cree East Property for $19M Exploration Spend Focus on Numerous Tier 1 Eastern Athabasca Basement and Unconformity Uranium Targets
CanAlaska Signs Letter Of Intent On Cree East
Project
Nexus has Staged Option to Earn up to 75% Interest in the Cree East Property for $19M
Exploration Spend
Focus on Numerous Tier 1 Eastern Athabasca Basement and Unconformity Uranium Targets
Vancouver, British Columbia--(Newsfile Corp. - January 22, 2024) -
CanAlaska Uranium Ltd. (TSXV:
CVV)
(
OTCQX: CVVUF) (FSE:
DH7)
("CanAlaska" or the "Company") is pleased to announce that is
has entered into a Letter of Intent ("LOI"), dated January 19, 2024 with Nexus Uranium Corp. ("Nexus") to
allow Nexus to earn up to a 75% interest in the Cree East Project (the "Project") in the Athabasca Basin,
Saskatchewan (Figure 1). The Cree East Project is located in the southeastern Athabasca Basin and
covers 57,752 hectares. The Project is located 35 kilometres west of the Key Lake Mine and Mill
Complex.
Figure 1
– Cree East Project Location
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2864/195157_0c111d89d40b0936_002full.jpg
Nexus may earn up to a 75% interest in the Project by undertaking work and payments in three defined
earn-in stages. Nexus may earn an initial 40% interest (Stage 1) in the Project by paying the Company
$750,000 cash in tranches over 12 months, issuing $3,000,000 of common shares of Nexus in tranches
over 12 months and incurring $5,500,000 in exploration expenditures on the Project and paying other
costs related thereto within 18 months of the date of the definitive agreement (the "Agreement Date").
Nexus may earn an additional 20% interest for a total 60% interest (Stage 2) in the Project by paying to
the Company a further $1,000,000 cash and issuing an additional $3,000,000 Nexus common shares
concurrent with providing notice that it wishes to proceed with the Stage 2 earn-in, and by incurring a
further $6,500,000 in exploration expenditures on the Project and paying other costs related thereto
within 24 months of commencing the Stage 2 earn in (approximately 3.5 years after the Agreement
Date). Nexus may earn an additional 15% interest for a total 75% interest (Stage 3) in the Project by
paying to the Company a further $1,250,000 cash and issuing an additional $4,000,000 Nexus common
shares concurrent with providing notice that it wishes to proceed with the Stage 3 earn-in, and by
incurring an additional $7,000,000 in exploration expenditures on the Project and paying other costs
related thereto within 24 months of commencing the Stage 3 earn in (approximately 5.5 years after the
Agreement Date).
All Nexus shares issued to CanAlaska under the option agreement will be subject to a hold period
expiring four months and one day after their date of issue pursuant to applicable Canadian securities
laws. In addition, CanAlaska has agreed to voluntary resale restrictions on such shares whereby 25% of
the shares will be released from voluntary resale restrictions 3, 6, 9 and 12 months after their issue date.
After successful completion of (a) Stage 1, if Nexus elects to not enter the next stage or fails to make the
Stage 2 option payments when and as required; or (b) Stage 2, if Nexus elects to not enter the next
stage or fails to make the Stage 3 option payments when and as required; or (c) Stage 3, a joint venture
will be formed and the parties will either co-contribute thereafter on a simple pro-rata basis or dilute on a
pre-defined straight-line dilution formula. Any party diluting to a 10% interest will automatically forfeit its
interest in the Project and in lieu thereof will be granted a 2% net smelter return royalty on the Project.
During Stage 1 and Stage 2 of the option agreement, CanAlaska will be operator of the Project and will
be entitled to charge an operator fee. Nexus will have deciding voting rights on annual exploration
programs while sole funding at the various option stages and will have the right to assume operatorship
after successfully earning a 60% interest in the Project (Stage 2).
An Area of Mutual Interest ("AMI") will extend two kilometres from the outer boundary of the Project,
excluding all properties within such area that are currently held by CanAlaska at time of signing the
definitive agreement.
Nexus is currently conducting due diligence on the properties comprising the Project. Upon successful
due diligence, the parties will work towards finalizing and executing a formal agreement. The Company
will provide updates on this transaction if and when they become available.
CanAlaska CEO, Cory Belyk, comments,
"I am very pleased to be partnering with Nexus Uranium to
move the large and highly prospective Cree East project forward toward discovery. CanAlaska has
been patiently waiting for the uranium market to return so the Cree East project could be advanced
further in a meaningful way with a meaningful investment. This deal provides a very significant
investment into this project which has been dormant for over a decade. The uranium market has
clearly returned in a major way with uranium spot price now at $106 per pound and climbing, and
global support and fundamentals I have not seen in my nearly 30 years in uranium exploration and
mining. I believe this market is truly unprecedented, and our shareholders can now look forward to
abundant news flow from the Cree East project. Thank you to the Nexus team for working with us to
find the appropriate investment pathway for this world class property."
About the Cree East Project
The Cree East project is located in the southeastern Athabasca Basin, 35 kilometres west of the Key
Lake Mine and Mill Complex. The southern boundary of the project is located 5 kilometres North of the
present-day Athabasca Basin edge. The Project consists of 17 contiguous mineral claims for a total of
57,752 hectares.
Early exploration on the Cree East Project was undertaken in the 1970's and 1980's, with several stages
of historical regional and project scale ground and airborne geophysical surveys, focused prospecting
and boulder sampling programs, and shallow diamond drilling. In the early 2000's, CanAlaska acquired
the project through staking and began a property-wide lake sediment, boulder, and soil sampling
program. This work program was followed up by a series of large-scale airborne electromagnetic and
magnetic surveys, which were subsequently refined with higher-resolution ground-based geophysical
surveys, including audio-magnetotelluric (AMT), IP-Resistivity, and Ground Moving Loop
Electromagnetics (EM). This large-scale geophysical approach to the Cree East Project has identified
seven major exploration grids on the project, of which Grid 7 appears to be the most prospective with
nine target areas.
Between 2008 and 2012, CanAlaska 91 holes were drilled for a total of 34,473 metres. All drilling to
date has been completed on Grid 7, targeting coincident basement EM-conductors with overlying
sandstone low resistivity features. The most significant drilling results come from the Target Area B,
where clay alteration extends throughout the entire sandstone with altered pyrite and associated uranium
enrichment in the lower sandstone. The sandstone alteration is associated with wide intersections of
brecciation and faulting, causing over 50 m of vertical unconformity displacement. Hydrothermal
alteration continues into the basement where the best intersection of uranium mineralization on Target
Area B was intersected in CRE083 that consisted of 0.09% U
3
O
8
over 0.5 metres from 500.1 metres
associated with hematite-altered quartzite.
Since acquiring the Project, CanAlaska has spent over $20 million on exploration through a previous
partnership with a Korean consortium.
Other News
The Company's management team is currently attending the Vancouver Resource Investment
Conference ("VRIC") on in Vancouver, BC and has representatives at booth #635.
VRIC - 2024
.
About CanAlaska Uranium
CanAlaska Uranium Ltd. (TSXV: CVV) (OTCQX: CVVUF) (FSE: DH7) holds interests in approximately
350,000 hectares (865,000 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 Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for
this news release is Nathan Bridge, MSc., P. Geo., Vice-President Exploration for CanAlaska Uranium
Ltd., who has reviewed and approved its contents.
On behalf of the Board of Directors
"Cory Belyk"
Cory Belyk, P.Geo., FGC
CEO, President and Director
CanAlaska Uranium Ltd.
Contacts:
Cory Belyk, CEO and President
Tel: +1.604.688.3211 x 138
Email:
General Enquiry
Tel: +1.604.688.3211
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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https://www.newsfilecorp.com/release/195157