CanAlaska Uranium Ltd. and Core Nickel Corp. have recently announced the closing of the spin-out plan of arrangement. Under the arrangement, CanAlaska Uranium Ltd. and Core Nickel Corp. will each retain interests in the properties at the Waterbury Lake project in Saskatchewan.
The spin-out plan was initially announced in October 2019, and involved the transfer of a 100% interest in the Waterbury Lake property from CanAlaska to Core Nickel. The new Core Nickel property consists of the northern and western portions of the Waterbury Lake project, while CanAlaska continues to hold the southern and eastern portions. The arrangement will provide each company with the resources to advance their interests and focus their research on specific property interests.
CanAlaska retains its exploration rights and an overall property-wide royalty from the Core Nickel property, while Core Nickel will undertake exploration and development of a prospective nickel and copper mineralized zone across its portions of the Waterbury Lake property.
CanAlaska CEO, Peter Dasler, has stated that the spin-out plan is beneficial for both companies: “The spin-out creates an important corporate opportunity for the two companies. Core Nickel’s focused exploration and development strategy on the promising nickel and copper target will benefit materially from a capitalized and focussed niche exploration company. Core Nickel’s shareholders gain the opportunity to benefit from a focused exploration program on the Waterbury Lake nickel-copper target, while CanAlaska’s shareholders benefit from CanAlaska’s ongoing interest in the property, and its significant and extensive knowledge base.”
The Waterbury Lake Project covers 184.5 km2 and contains numerous high-grade nickel-copper mineralized zones, with little modern exploration accomplished on the prospective features. Core Nickel plans to move quickly to execute a comprehensive exploration program on its portion of the property, as well as to raise the necessary capital to do so.
CanAlaska and Core Nickel have agreed to move forward with mutual respect and co-operation on the Waterbury Lake project. CanAlaska has agreed to provide technical expertise to Core Nickel to maximize theco-operation.
The spin-out plan is an agreement that will benefit both CanAlaska Uranium Ltd. and Core Nickel Corp. as they progress their respective exploration and development strategies on the Waterbury Lake project in Saskatchewan. With the spin-out plan in place, both companies are now in a position to take advantage of their respective interests in the property.