CanAlaska Uranium Options West McArthur Uranium Project to Cameco

CanAlaska Uranium (TSXV:CVV) has entered into an option agreement with Cameco( TSX:CCO), one of the world’s largest uranium producers, for its West McArthur project. Under the terms of the agreement, Cameco must spend roughly $12.5 million in exploration expenditures for up to a 60 percent interest in the project.
As quoted in the press release:

To earn a 60% interest in West McArthur, Cameco will pay CanAlaska an initial $725,000 to have the right to earn a first stage 30% interest for a $5 million exploration program within 3 years on two separate target areas: Grid 1 and Grid 5. Cameco will then have the right, after a $500,000 payment, to carry out a further $6.275 million of work on the Project over the following 3 years to earn a further 30% interest and form a Joint Venture (JV) with CanAlaska. A guaranteed minimum $1 million work program is required in the first year and permitting and planning for a 2016 drill program is underway.
The West McArthur Uranium Project covers 35,830 hectares (88,536 acres) commencing 15 kilometres (9 miles) west of Cameco’s majority owned McArthur River uranium mine. Importantly, the Project is immediately adjacent to Cameco’s recently disclosed Fox Lake uranium discovery with reported inferred resources of approximately 68.1 million lbs based on 387,000 tonnes at 7.99% U3O8. The Fox lake discovery is within the Read Lake project operated by Cameco (Cameco 78.2%, Areva 21.8%).

Click here for the full press release.