Fjordland Exploration (TSXV: FEX) executed a non-binding letter of intent with CanAlaska Uranium (TSXV: CVV) to be granted the option to acquire up to an 80% interest in CanAlaska’s wholly-owned Hunter and Strong properties, part of CanAlaska’s North Thompson nickel project in Manitoba, Canada.
Under the terms of the agreement, Fjordland can earn its interest by incurring in exploration expenditures that total $9 million, issuing 8,500,000 shares and making cash payments of $150,000 over a period of 66 months.
It is contemplated that a Joint Technical Operating Committee consisting of geologists from CanAlaska’s shareholder HPX, CanAlaska itself and Fjordland will be formed to plan and oversee exploration activities
The 18,685-hectare Hunter and Strong claim group is located 25 kilometres north of the Thompson mine operated by Vale S.A. Canada and 285 kilometres north of the city of Winnipeg.
In a media brief, the companies explained that CanAlaska has been exploring the Thompson Nickel Belt for the past several years and in 2017 commissioned Condor Geophysical Consulting to reprocess historic 2007 VTEM airborne surveys.
According to the miners, the review demonstrated 14 potential Ni-Cu-PGE exploration targets, of which six are considered a priority and had never been drilled by the former tenure holder, Falconbridge Nickel.
“The North Thompson Nickel Belt project meets Fjordland’s long-standing exploration criteria in that the high-quality work done to date clearly demonstrates large scale, drill-ready targets in a well-documented geologic setting,” Richard Atkinson, Fjordland’s president, said in a statement.