Nexus Uranium To Earn Up To 75% Interest In Cree East Property Under $32 Million Option Agreement
CanAlaska Uranium (TSXV: CVV) has optioned out its Cree East uranium project in the Athabasca Basin. Under the terms of the arrangement, Nexus Uranium (CSE: NEXU) can earn up toa 75% stake in the project.
Found 40 kilometres to the west-northwest of the Key Lake uranium mill owned and operated by Cameco, the Cree East project sits on the eastern shores of a lake bearing the same name. The project amounts to 17 contiguous claims covering 57,752 hectares, and contains a basement0hosed unconformity-type uranium deposit that is similar to what is found at McArthur River.
The project has been extensively explored to date, with over $20 million spent on the project since 2006, with 34,473 metres drilled across 91 holes, along with several rounds of geophysics. Uranium is said to be found at depths ranging from 100 to 450 metres below surface, with CanAlaska indicating a total of nine target zones exist on the property, however no resource has been assembled to date.
Under the terms of the option agreement, there are multiple stages of earn-in for the project. The arrangement breaks down as follows.
- For an initial 40% interest, Nexus must
- Pay $750,000 in cash
- Issue $3.0 million in common shares
- Incur $5.5 million in exploration expenses over 18 months
- For an additional 20% interest, Nexus must
- Pay $1.0 million in cash
- Issue $3.0 million in additional common shares
- Incur $6.5 million in additional exploration expenses over 24 months
- For an additional 15% interest, Nexus must
- Pay $1.25 million in cash
- Issue $4.0 million in additional common shares
- Incur $7.0 million in additional exploration expenses over 24 months
Nexus Uranium last traded at $0.70 on the CSE.
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