CanAlaska Uranium Ltd. has sold its Kasmere South uranium project in Manitoba’s far north.
East Resource has purchased the project for a cash payment of $1.8M (all funds in Canadian dollars) and a 2.5 per cent net smelter royalty. The royalty has a $20 million one-time pre-production purchase option.
East Resource and CanAlaska have had ongoing activities and relationships in the Athabasca region since 2009.
CanAlaska will assist East Resource with the exploration of the property.
Historical exploration work shows evidence of surface uranium and gold mineralization, CanAlaska said.
Sparse historical drilling carried out in the 1970s intercepted uranium mineralization. These known uranium zones are priority targets for new exploration.
CanAlaska said the cash payment helps its plan to concentrate on more rapid exploration of its core Japanese and Korean joint ventures.
The company said it is now fully funded for its basic operations for the next two years.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of information supplied by CanAlaska.
