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Vulcan optioning claims near South Voisey's Bay property to Fjordland

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Vulcan optioning claims near South Voisey's Bay property to Fjordland

Vulcan Minerals Inc. said March 26 that it signed a binding letter of intent granting Fjordland Exploration Inc. an option to acquire a 65% working interest in 30 mineral claims in Labrador.

The claims are contiguous to the mineral tenure held by Fjordland and Commander Resources Ltd. as part of their South Voisey's Bay nickel-copper-cobalt project.

Under the terms, Fjordland is required to pay Vulcan C$45,000 and incur C$150,000 in exploration expenditures over three years.

Upon exercise of the option, the companies will form a joint venture, whereby Vulcan will be carried for 100% of its joint venture expenditures on the claims until Fjordland earns its full interest from Commander on the surrounding contiguous lands or incurs at least C$7 million on the holdings.

In addition, Fjordland's strategic investor, High Power Exploration Inc., notified the company that it intends to fund a minimum of C$1.2 million of the proposed 2018 summer drill program on the South Voisey's Bay project.

In August 2017, High Power Exploration agreed to fund the junior explorer and invest in the project in exchange for a 65% stake in the property.