TSX-V-listed Vulcan Minerals has inked a binding letter of intent with explorer Fjordland Exploration, which grants Fjordland the option to acquire a 100% working interest in 30 mineral claims (750 ha) located in the South Voisey’s Bay area, Labrador.
Under the terms of the agreement, Fjordland has the option to pay Vulcan just over 1.3-million common shares, $70 000 cash and incur $250 000 in exploration expenditures over a period of three years, of which $25 000 cash and 600 000 common shares are payable upon signing the agreement.
Vulcan reserves a 2% net smelter return royalty on the claims subject to Fjordland’s right to buy back 50% of that royalty by paying Vulcan $2-million cash.
The property is contiguous to mineral tenure held by Fjordland as part of their ongoing South Voisey’s Bay nickel/copper/cobalt project.