Fjordland and Commander Begin Drilling at South Voisey’s Bay Nickel Project, Labrador
Vancouver, BC, September 21, 2017 ─ Fjordland Exploration Inc. (TSX-V: FEX) and project partner Commander Resources Ltd. ("Commander") (TSX.V: CMD) are pleased to announce that they have begun drilling at their South Voisey’s Bay Project (the “SVB Property”) located in Labrador, Canada. The initial program will comprise a minimum of 1000 metres of core drilling in 5 to 7 holes designed to test a number of conductors at the Sandy Target.
The SVB property currently comprises 29,450 hectares and is located in central Labrador some 80 kilometres south of Vale’s Voisey’s Bay Nickel mine and covers parts of the Pants Lake Gabbro Complex. The Pants Lake Complex contains host rocks with alteration and nickel mineralization styles consistent with high nickel prospectivity. In 2014 Commander and Fjordland completed a UTEM 3 and ground magnetic survey over a portion of the claims referred to as the Sandy Target. This survey outlined a strong horizontal conductor and 4 strong sub-vertical conductors near the Worm Gabbro, a possible feeder dyke to the larger gabbro bodies (see News Release dated March 2, 2015). Additional work this month included re-processing of historic geophysical data including a partially overlapping UTEM 3 survey completed in 2002 and successfully outlined two additional sub-vertical conductors several hundred metres to the west.
Fjordland currently owns a 15% interest in the property and may acquire up to a 100% interest by paying Commander combined cash payments of $290,000, completing $8.0 million in exploration expenditures and issuing to Commander an aggregate of 4.5 million shares of Fjordland (see press release dated June 5, 2017 for details). Upon Fjordland acquiring a 100% interest in the project, Commander will retain a 2% NSR with Fjordland having the right to buy down 50% of the Royalty for a payment of $5,000,000 as a cash payment, or a cash payment equal $2,500,000 plus the issuance of shares having a fair market value of 50% of the buy down amount. Commander will receive a $10,000,000 advance royalty payment at the commencement of commercial production.
Fjordland has entered into definitive agreements with an affiliate of High Power Exploration Inc. (“HPX”) under which it is subscribing for common shares and warrants from Fjordland for an aggregate consideration of $1.4 million by means of a private placement. In addition, HPX has also agreed to fund, on behalf of Fjordland, $7.4 million in exploration expenditures and to make $290,000 of property payments required to be made to Commander. If completed, and Fjordland acquires a 100% interest in the South Voisey’s Bay project, Fjordland has agreed to assign a 65% project interest to HPX. The terms of the transaction were originally announced on August 28, 2017.
Victor A. Tanaka, P. Geo. is a qualified person within the context of National Instrument 43-101, and has read and takes responsibility for the technical aspects of this release.
About Fjordland Exploration Inc.
Fjordland Exploration Inc. is a mineral exploration company that is focused on the discovery of large scale potentially economic deposits located in Canada. For further information visit Fjordland’s website at www.fjordlandex.com
On behalf of the Board of Directors,
“Richard C. Atkinson”
Richard C. Atkinson, P.Eng.
President & CEO
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For further information, please call: FJORDLAND EXPLORATION INC. Richard C. Atkinson, President and CEO 1-604-805-3232 info@fjordlandex.com |
Some statements in this news release may contain forward-looking information. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include without limitation the completion of planned expenditures, the ability to complete exploration programs on schedule and the success of exploration programs.
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