VANCOUVER, June 3 /CNW/ - CanAlaska Uranium Ltd. (TSX.V - CVV)
("CanAlaska") and Great Western Minerals Group Ltd. ("GWMG") are pleased to
announce that GWMG has entered into a C$6 million option agreement whereby
GWMG can acquire up to a 51% interest in CanAlaska's Misty Project near
Lac Brochet in northwestern Manitoba. The agreement is subject to regulatory
The Project, with an area of 53,080 hectares, is underlain by Wollaston
Group metasedimentary rocks and granitic rocks. Rare Earth Elements ("REE")
mineralization was discovered by CanAlaska exploration teams during the
reconnaissance sampling program in the search for uranium mineralization. On
March 11, 2008, CanAlaska reported REE assay results up to 10.4% REE from
samples collected during this program. Most of the samples are from outcrop
over an area of one square kilometre and are dominantly described as granite,
with some samples described as metasedimentary rocks. The samples lie within
and along the margins of a magnetic high which CanAlaska believes is related
to this very high grade rare earth mineralization.
Under the terms of the agreement, GWMG will pay to CanAlaska a total cash
payment of $100,000 with $10,000 payable on execution date of the agreement,
$10,000 on each of the first four anniversary dates, and $50,000 payable on
the fifth anniversary of the execution date. In addition to the cash payments,
GWMG will issue to CanAlaska a total of 200,000 shares of GWMG with 100,000 to
be issued on the execution date of the agreement and the remaining 100,000
shares to be issued on the first anniversary.
During the course of the agreement period, GWMG will be required to
perform a total of $6,000,000 of exploration work, with a total of $450,000
during the first four years of the agreement, a further $2,550,000 on or prior
to the fifth anniversary date, and a further $3,000,000 on or before the 6th
anniversary date. Upon completion of the required payments and exploration
expenditures, GWG will have earned a 51% interest in the property.
Upon receipt of the necessary permits and approvals, GWMG will begin its
preliminary exploration activities on this project, including geological
mapping, prospecting, and ground geophysics, to establish drill targets for
further exploration. As part of its community awareness program, GWMG will
also meet with the First Nations communities in the region to introduce the
Company and present its exploration program for the area.
Jim Engdahl, President and CEO of Great Western Minerals Group said "This
is another great opportunity for Great Western Minerals as well as for
CanAlaska. The preliminary data that we have reviewed is very encouraging. As
well, the property is easily accessible with good winter road access to
Lac Brochet from the railhead at Lynn Lake, Manitoba. Lac Brochet has an
airport with daily scheduled flights from a number of other communities.
Engdahl adds, "This JV opportunity reinforces our long term strategy of
becoming one of the leading, fully integrated rare earth companies outside of
China. Properties with this potential may very well be the solution to help
the world deal with the impending shortage of these critical elements."
Peter Dasler, P.Geo, President and CEO of CanAlaska Uranium Ltd. said
"Our exploration efforts for uranium have identified REE mineralization in
many areas never previously explored. The Misty Project contains some of the
highest rare earth values we have identified in our exploration work. This new
zone of REE is well outside the uranium mineralized zones, but is strongly
associated with thorium mineralization. We are pleased to be able to work with
Great Western Minerals to understand further the nature and importance of this
target area, and to understand more about rare earth mineral deposits for our
John Pearson (MSc., P.Geo), Vice President Exploration for Great Western
Minerals Group is the Qualified Person responsible for reviewing the contents
of this release.
About CanAlaska Uranium Ltd. - www.canalaska.com
CANALASKA URANIUM LTD. (CVV - TSX.V, CVVUF - OTCBB, DH7 - Frankfurt) is
undertaking uranium exploration in nineteen 100%-owned and two optioned
uranium projects in Canada's Athabasca Basin. Since September 2004, the
Company has aggressively acquired one of the largest land positions in the
region, comprising over 2,500,000 acres (10,117 sq. km or 3,906 sq. miles).
To-date, CanAlaska has expended over Cdn$40 million exploring its properties
and has delineated multiple uranium targets. The Company's geological
expertise and high exploration profile has attracted the attention of major
international strategic partners. Among others, Mitsubishi Development Pty., a
subsidiary of Japanese conglomerate Mitsubishi Corporation, has undertaken to
provide CanAlaska C$11 mil. in exploration funding for its West McArthur
Project. Exploration of CanAlaska's Cree East Project is also progressing
under a C$19 mil. joint venture with a consortium of Korean companies led by
Hanwha Corporation, and comprising Korea Electric Power Corp., Korea Resources
Corp. and SK Energy Co, Ltd.
About Great Western Minerals Group Ltd. - www.gwmg.com
GREAT WESTERN MINERALS GROUP LTD. (GWG - TSX.V, GWMG - OTCBB) is a
Canadian based company exploring for, and developing, strategic metal
resources primarily in North America. The Company holds 100% interest in a
10,188 hectare advanced Rare Earth Elements property in Northern Saskatchewan,
and a 25% interest in a 17,094 hectare mineral sands Rare Earth Elements
property in Utah. Pursuing a vertically-integrated business model, the
Company's wholly-owned subsidiary Great Western Technologies Inc., located in
Troy, Michigan, produces a variety of specialty alloys for use in the battery,
magnet and aerospace industries. These "designer" alloys include those
containing copper, aluminum, nickel, cobalt and the rare earth elements.
On behalf of the Board of Directors
Peter Dasler, M.Sc., P.Geo.
President & CEO, CanAlaska Uranium Ltd.
The TSX Venture has not reviewed and does not accept responsibility for
the adequacy or accuracy of this release: CUSIP No. 13708P 10 2. This news
release contains certain "Forward-Looking Statements" within the meaning of
Section 21E of the United States Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, included herein are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate, and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from the Company's expectations are disclosed in the Company's
documents filed from time to time with the British Columbia Securities
Commission and the United States Securities & Exchange Commission.
For further information:
For further information: Emil Fung, Vice President, Corp. Dev., Tel:
(604) 688-3211, Email: firstname.lastname@example.org