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CanAlaska Uranium Ltd. (TSXV:CVV) signed an agreement with Bayswater Uranium for the termination of its option on the Collins Bay Extension project on the northeast part of the Athabasca Basin in Saskatchewan. In exchange, Bayswater will issue 2 million common shares in its capital to CanAlaska and grant a 2.5% Net Smelter Returns Royalty in the project. CanAlaska had the right to earn a 70% interest in the Collins Bay Extension project.
As quoted in the press release:
CanAlaska previously had the right to earn a 70% interest in the project, however this Agreement facilitates a transaction where Bayswater can enter into an agreement for the sale of the property to Nu Nova Energy Ltd. (“Nu Nova”), a private China-based company. Nu Nova will receive the right of first refusal to purchase up to a 1.5% NSR from CanAlaska for $500,000 per 0.5% royalty after production is achieved.
CBE is located on the northeast margin of the Athabasca Basin. The sale of the Collins Bay Extension property is subject to TSX-V approval and is expected to complete within thirty days.
CanAlaska Uranium President, Peter Dasler, said:
We have been able to discuss the potential of the Collins Bay Extension project with a number of interested Asian based parties over the past 6 months. This transaction presents good upside to CanAlaska, and offers further investment interaction, while preserving our focus on our core projects of West McArthur and Cree East with our Japanese and Korean partners. We are eagerly awaiting the start of new exploration on this project, and a resumption of drilling on our nearby NW Manitoba project where an intense drill program, utilizing two diamond drills is expected this summer.
Click here to read the CanAlaska Uranium Ltd. (TSXV:CVV) press release
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