Fjordland Announces Recapitalization, Voisey’S BAY Option Agreement, 2017 Exploration Programs and Financing
NEWS RELEASE
#17-01
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FJORDLAND ANNOUNCES RECAPITALIZATION,
VOISEY’S BAY OPTION AGREEMENT, 2017 EXPLORATION
PROGRAMS AND FINANCING
VANCOUVER, BRITISH COLUMBIA, June 5, 2017 – Fjordland Exploration Inc. (TSX-V:
FEX) announces it is proceeding with a share consolidation , on the basis of five (5) old common
shares for one (1) new common share (the "Consolidation").
Fjordland reports it has entered into a Memorandum of Understanding (“MOU”) with Commander
Resources Ltd. (“Commander”) whereby Fjordland has been granted a series of options to earn an
additional 85% interest in the South Voisey’s Bay nickel-cobalt project (“SVB”) thereby bringing
its interest to 100%. The MOU is subject to the approval of the TSX Venture Exchange (TSX-V).
Fjordland may exercise its option in three stages as summarized below.
Earn-In
Options
Date for
Completion
Option
Payment
Post-
Consolidation
Shares
Exploration and
Development
Expenditures
First Option
20%
TSX-V Approval
Date
(as defined below)
$ - 200,000 $ -
October 31, 2017 - - $600,000(4)
Second
Option (40%)
1st anniversary of
Approval Date (1)
$ 10,000 250,000 -
2nd anniversary of
Approval Date
$ 15,000 300,000 -
3rd anniversary of
Approval Date
$ 25,000 350,000 -
October 31, 2021 $ 40,000 400,000 $ 2,400,000
Third Option
(25%)
October 31, 2024 $200,000 3,000,000 $5,000,000
TOTAL $ 290,000 4,500,000 $ 8,000,000
Upon Fjordland vesting a 100% interest, Commander will be granted a 2% NSR. Fjordland will
retain the right to buy one-half of the NSR for $5 million cash or in the alternative a cash payment
of $2.5 million plus the issuance of post consolidation shares havin g a fair market value of $2.5
million.
Upon commencement of commercial production, Commander will receive an advance royalty
payment of $10 million.
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The SVB property is located in central Labrador and covers part of the Pants Lake Intrusion which
is a ni ckeliferous mafic plutonic complex which shares many similariti es with the Voisey’s Bay
Intrusive Complex. Geophysical surveys carried out in late 2014 have outlined a strong horizontal
conductor plus four strong sub-vertical conductors. These are consid ered to be high priority drill
targets and are collectively referred to as the Sandy target.
Commander has recently completed the staking of additional 3390 ha.of claims contiguous to the
pre-existing 4260 ha.claim group. Mineral tenure now under management has increased 74% to an
aggregate of approximately 7650 ha."
Fjordland announces it has received an Authority for Expenditure request (“AFE”) from Serengeti
Resources (“SIR”) in the amount of $200,000 to fund Fjordland’s 47.3% interest in a summer drill
program to test a newly identified target on the Milligan West project, British Columbia. As
announced in a news release dated December 15, 2016 last summer ’s exploration program
delineated a very strong IP anomaly which is considered to have the size and intensity to host a
potentially significant sulphide system of moderate depth.
The Company announces that it proposes to complete a non-brokered private placement of up to
$1,000,000 (the "Financing"). Terms of the Financing will be announced once TSX-V approval
has been obtained.
The Company proposes to use the proceeds of the Financing as follows: $700,000 to complete a
drill program on the South Voisey’s Bay Property, Labrador, $200,000 to complete a drill
program on the Milligan Property, British Columbia and $100,000 for working capital and
general corporate purposes.
Information Regarding the Consolidation
Pursuant to a Directors’ resolution dated June 2, 2017, Fjordland will, subject to TSX-V approval,
consolidate its share capital on a one-new-for-five-old basis. Each fractional common share equal
to or greater than 0.5 common shares will be rounded up to the nearest whole common share and
each fractional common share less than 0.5 common shares will be rounded down to the nearest
whole common share. The Company will issue another news release providing more information
and confirming the effective date of the Consolidation upon receipt of approval of the TSX-V.
Following the Consolidation and before completion of the Financing, the Company is expected to
have 20,756,383 common shares issued and outstanding.
On behalf of the Board of Directors,
“Richard C. Atkinson”
Richard C. Atkinson, P.Eng.
President & CEO
For further information, please call:
FJORDLAND EXPLORATION INC.
Richard C. Atkinson, President and CEO
1-604-805-3232
www.fjordlandex.com
Some statements in this news release may contain forward-looking information. These statements address
future events and conditions and, as such, involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements to be materially different from
any future results, performance or achievements expressed or implied by the statements. Such factors
include without limitation the completion of planned expenditures, the ability to complete exploration
programs on schedule and the success of exploration programs.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.