Uracan Resources Ltd. said Sept. 5 that it secured an option to earn up to a 100% interest in the Huzyk Creek vanadium property in Manitoba.
The property consists of a mineral exploration license covering around 216 square kilometers.
To earn an initial 49% stake, Uracan is required to pay C$215,000, issue C$180,000 in shares and spend C$2.5 million in exploration on the property in three years.
The company can earn an additional 21% interest by paying C$125,000, issuing C$50,000 in shares and spending C$2.2 million in exploration, which will include a preliminary economic assessment.
Uracan can take its stake to 100% by completing a pre-feasibility study and paying C$500,000.
The vendors will retain a 2% net smelter return royalty on Huzyk Creek, while Uracan will hold the right to repurchase half of the royalty for C$1 million in cash or shares.
Uracan will also have a right of first refusal on the remaining 1% royalty if the vendors elect to sell this interest.