Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Fjordland has signed a letter of intent (LOI) with CanAlaska Uranium Ltd to acquire an 80pc stake in two mines in North Thompson Nickel Project (TNP), Canada.


According to a 2017 aerial survey commissioned by CanAlaska, TNP has 14 high potential nickel, copper, platinum group ore targets, of which six were never drilled by Falconbridge Nickel—a company that held the tenure for the project before CanAlaska. Fjordland, in the course of due diligence before signing the LOI, also found many near surface potential targets that could hold high amounts of ore in the area.


Richard Atkinson, president, Fjordland noted that the north TNP belt, where both mines are located, has produced over 150mn mt of nickel sulfide ore consisting of 2.32pc nickel grading, 0.16pc copper, and 0.83g/t of platinum group metals since production began in that area in 1961.


Moreover, the property lies 25km north of the Thompson mine operated by Vale, which has successfully drilled for the ore through brownfield exploration.


Under the agreement, CanAlaska has given Fjordland the option of buying up to 80pc interest in the former’s Hunter and Strong properties in TNP over a five-year period. The agreement also lays down the details of the exploration expenditure that Fjordland would have to incur to earn its interest.


It includes the issuance of 17mn shares to CanAlaska in four tranches over the span of the agreement, along with an option to issue a further 10mn shares to the company once Fjordland completes its initial survey. Additionally, CanAlaska will be the operator of the two mines initially with Fjordland becoming the operator in two years once the second tranche of shares issuance is completed.

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