CanAlaska Uranium Ltd. (TSX-V: CVV/OTCQX: CVVUF) and Core Nickel Corp. (CSE: BKJ) have announced the successful closing of their Plan of Arrangement, both companies have agreed to a transaction that will see Core Nickel acquire a 24.99% interest in CanAlaska for a total consideration of C$2,500,000.
Under the terms of the Plan of Arrangement, Core Nickel has acquired an aggregate of 10,000,000 common shares of CanAlaska on a fully-diluted basis in exchange for the total consideration of C$2,500,000. All of the common shares issued in the Plan of Arrangement are subject to a four month and one day hold period in accordance with applicable securities laws.
The Plan of Arrangement was initially announced on November 15th, 2018, providing Core Nickel with an opportunity to spin out of CanAlaska, thus allowing the company to pursue its own mineral exploration initiatives in the uranium dace in the Athabasca Basin.
Commenting on the news, Mike Gunning, CEO & Director of Core Nickel Corp., stated, “The completion of the Plan of Arrangement allows us to pursuit our own exploration and development plans. The CanAlaska management team has allowed us to keep the interests of both companies in mind, and we look forward to a prosperous future.”
CanAlaska Uranium Ltd. is focused on exploring Canada’s most prospective uranium regions for the benefit of all shareholders. The company’s primary focus is to identify and explore potential uranium deposits in the Athabasca Basin of northern Saskatchewan, one of the world’s most productive and well-known uranium producing regions.
Core Nickel Corp. is a mineral exploration company focused on acquiring geological data and exploring highly prospective targets in Canada. The company’s primary focus is the concession Krempf-St, located in Quebec province. Additionally, the company is also looking at other opportunities in the region such as uranium and base metals.
Both companies are on the lookout for potential opportunities in various jurisdictions, which could add value to their respective mineral portfolios.
With the Plan of Arrangement successfully completed, CanAlaska and Core Nickel have taken an important step towards achieving their respective exploration ambitions in the uranium and base metals spheres. The spin-out plan promises to benefit both companies as they pursue individual projects that could bring significant returns to their respective shareholders.