CanAlaska Uranium (TSXV: CVV) announced that it has entered into an option agreement with Omineca Mining and Metals (TSXV: OMM) to allow OMM to earn a 50% interest in CanAlaska’s Quesnel porphyry copper project in British Columbia, Canada.
In a press release, CanAlaska explained that OMM may earn up to a 50% interest in the project by issuing 300,000 common shares of OMM, and by completing a 2,000-metre drill diamond program within 12 months of the TSX Venture Exchange approval date.
After successful completion of the option, the companies plan to form a joint venture
After successful completion of the option, the companies plan to form a joint venture and they will either co-contribute on a simple pro-rata basis or dilute on a pre-defined straight-line dilution formula.
The 291.6-hectare Quesnel project is located 11 kilometres from the town of Quesnel and is centred on Mouse Mountain which, according to CanAlaska, has a hydrothermal system with copper-gold mineralization spread over a large area associated with typical copper porphyry-style alteration. Additional smaller copper showings are said to extend further out from this system indicating potential for a large-scale copper and gold system.
“Previous drilling conducted by various companies focused on surface showings and related resistivity targets and did not fully test the surrounding geophysical chargeability anomalies,” CanAlaska’s president, Peter Dasler, said in the media brief. “There are compelling and untested drill targets, as well as new showings to explore. The property lies within the trend of porphyry copper deposits hosted in the Quesnel Trough and is located close to established infrastructure. We are looking forward to working with Omineca to advance the existing discoveries.”