VANCOUVER, BRITISH COLUMBIA, June 5, 2017 – Fjordland Exploration Inc. (TSX-V: FEX) announces it is proceeding with a share consolidation, on the basis of five (5) old common shares for one (1) new common share (the "Consolidation").
Fjordland reports it has entered into a Memorandum of Understanding (“MOU”) with Commander Resources Ltd. (“Commander”) whereby Fjordland has been granted a series of options to earn an additional 85% interest in the South Voisey’s Bay nickel-cobalt project (“SVB”) thereby bringing its interest to 100%.The MOU is subject to the approval of the TSX Venture Exchange (TSX-V).
Fjordland may exercise its option in three stages as summarized below.
|
Earn-In |
Date for Completion |
Option |
Post- |
Exploration and Development Expenditures |
|
First Option |
TSX-V Approval Date (as defined below) |
$ - |
200,000 |
$ - |
|
October 31, 2017 |
- |
- |
$600,000(4) |
|
|
Second Option (40%) |
1st anniversary of Approval Date (1) |
$ 10,000 |
250,000 |
- |
|
2nd anniversary of Approval Date |
$ 15,000 |
300,000 |
- |
|
|
3rd anniversary of Approval Date |
$ 25,000 |
350,000 |
- |
|
|
|
October 31, 2021 |
$ 40,000 |
400,000 |
$ 2,400,000 |
|
Third Option (25%) |
October 31, 2024 |
$200,000 |
3,000,000 |
$5,000,000 |
|
TOTAL |
$ 290,000 |
4,500,000 |
$ 8,000,000 |
Upon Fjordland vesting a 100% interest, Commander will be granted a 2% NSR.Fjordland will retain the right to buy one-half of the NSR for $5 million cash or in the alternative a cash payment of $2.5 million plus the issuance of post consolidation shares having a fair market value of $2.5 million.
Upon commencement of commercial production, Commander will receive an advance royalty payment of $10 million.
The SVB property is located in central Labrador and covers part of the Pants Lake Intrusion which is a nickeliferous mafic plutonic complex which shares many similarities with the Voisey’s Bay Intrusive Complex.Geophysical surveys carried out in late 2014 have outlined a strong horizontal conductor plus four strong sub-vertical conductors.These are considered to be high priority drill targets and are collectively referred to as the Sandy target.
Commander has recently completed the staking of additional 3390 ha.of claims contiguous to the pre-existing 4260 ha.claim group. Mineral tenure now under management has increased 74% to an aggregate of approximately 7650 ha."
Fjordland announces it has received an Authority for Expenditure request (“AFE”) from Serengeti Resources (“SIR”) in the amount of $200,000 to fund Fjordland’s 47.3% interest in a summer drill program to test a newly identified target on the Milligan West project, British Columbia.As announced in a news release dated December 15, 2016 last summer’s exploration program delineated a very strong IP anomaly which is considered to have the size and intensity to host a potentially significant sulphide system of moderate depth.
The Company announces that it proposes to complete a non-brokered private placement of up to $1,000,000 (the "Financing"). Terms of the Financing will be announced once TSX-V approval has been obtained.
The Company proposes to use the proceeds of the Financing as follows: $700,000 to complete a drill program on the South Voisey’s Bay Property, Labrador, $200,000 to complete a drill program on the Milligan Property, British Columbia and $100,000 for working capital and general corporate purposes.
Information Regarding the Consolidation
Pursuant to a Directors’ resolution dated June 2, 2017, Fjordland will, subject to TSX-V approval, consolidate its share capital on a one-new-for-five-old basis.Each fractional common share equal to or greater than 0.5 common shares will be rounded up to the nearest whole common share and each fractional common share less than 0.5 common shares will be rounded down to the nearest whole common share. The Company will issue another news release providing more information and confirming the effective date of the Consolidation upon receipt of approval of the TSX-V. Following the Consolidation and before completion of the Financing, the Company is expected to have 20,756,383 common shares issued and outstanding.
On behalf of the Board of Directors,
“Richard C. Atkinson”
Richard C. Atkinson, P.Eng.
President & CEO
|
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.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
