CanAlaska Uranium Ltd. (“CanAlaska” or the “Company”) and Core Nickel Corp. (“Core Nickel” or the “Corporation”) today announced the closing of the plan of arrangement (the “Arrangement”) they announced on September 28, 2020.
Under the terms of the Arrangement, the Company will distribute all of the issued and outstanding shares of Core Nickel (“Core Nickel Shares”) to its shareholders on a pro-rata basis in exchange for newly issued shares of CanAlaska (“CanAlaska Shares”).
The Arrangement is designed to allow the Company to focus on its uranium exploration and development activities and to provide its shareholders with exposure to the refinery and downstream processing of cobalt, nickel and other metals.
Under the Arrangement, CanAlaska has issued one CanAlaska Share in exchange for each share of Core Nickel held by a CanAlaska shareholder. The distribution ratio of one CanAlaska Share for each Core Nickel Share, established upon the completion of the Exchange, implies a value of $0.25 per Core Nickel Share, excluding the accrued but unpaid portion of the dividend declared by Core Nickel on July 27, 2020 in the amount of $0.0175 per share.
In addition, the Arrangement provides an opportunity for CanAlaska shareholders to diversify their investments by holding an interest in Core Nickel, a corporation focused on refinery and downstream processing activities relating to cobalt, nickel and other metals.
The Arrangement received approval from Disinterested Shareholders of CanAlaska at a Special Meeting held on November 6, 2020. The Arrangement was also approved by the Supreme Court of British Columbia on November 18, 2020.
CanAlaska is a uranium exploration company with 32 prospecting permits covering 700,000 hectares over seven project areas, located in Saskatchewan, with an advanced project near Cochrane Lake. CanAlaska’s strategic holdings have attracted a joint venture partner which has committed to $29 million in exploration spending over the next four years.
Core Nickel is engaged in refinery and downstream processing activities relating to cobalt, nickel and other metals. The Corporation has acquired full rights to refinery and downstream processing technologies in provincial and national licenses and patents. Core Nickel also has a shareholding interest in three companies incorporated in the People’s Republic of China.
The Arrangement constitutes a taxable transaction for CanAlaska and Core Nickel shareholders. The Company and the Corporation will be issuing information circulars as soon as practicable to their respective shareholders with further details on the tax implications of the Arrangement.
This completion of the Arrangement is an important milestone for CanAlaska and Core Nickel and provides shareholders with further access to the resources of both companies. CanAlaska’s primary focus will now be to capitalize on its uranium exploration project, while Core Nickel will continue to pursue refinery and downstream processing activities.
