The claim comprises the southern portion of CanAlaska’s Moon project which adjoins Denison’s Wheeler River project in the eastern Athabasca Basin.
On signing of the option agreement, Denison paid CanAlaska $62,405 to make the necessary assessment security deposit to maintain the claim in good standing and will carry out $200,000 of exploration work on the claim over the next two years to acquire a 51% interest. CanAlaska has also granted to Denison the right to increase its interest in the claim to 75% for further $500,000 in expenditures.
The claim currently has a royalty payable to Denison. The option agreement includes provisions for the formation of a joint venture and a 2% NSR Royalty which will be automatically granted if either party’s interest is decreased below 10% ("NSR Dilution Royalty). The NSR Dilution Royalty may be purchased by the non-diluting party for $500,000.
CanAlaska president Peter Dasler said: "This is a good transaction for CanAlaska as we will start to benefit from Denison’s experience in an area where they have had recent multiple success at Wheeler River with the discovery of the Phoenix and Gryphon uranium deposits. CanAlaska will retain a 100% interest in the northern part of the Moon project."
In other news, CanAlaska is waiting for results for the drill program at NW Manitoba, under option to Northern Uranium Corp, and the drill program at Patterson Lake West, under option to Makena Resources.
The Company has acquired by staking additional claims in the Athabasca basin and is continuing discussions concerning its projects with various parties.
