Canalaska Uranium Ltd (CVE:CVV) shares soared as it revealed that Northern Uranium Corp plans to form a 70:30 joint venture with the firm on the northwest Manitoba property.
Under the previous option deal, Northern Uranium was required to spend $6mln and issue 7mln shares and 3.5 million warrants to Canalaska to gain 70%.
So far Northern has allocated expenditures totalling over $8.68mln to the project, and issued all required shares and warrants - all warrants have now expired unexercised.
Northern Uranium had the right to acquire 80%, which it did decide to go for in 2015, via a further $5.6mln in expenditures and further issuances of shares and warrants to Canalaska.
It issued a further 5mln shares and 2.5 million warrants exercisable at five cents for a term expiring September 15, 2018.
But now management has elected not to proceed further and has decided to form the joint venture at 70% and 30%.
It is currently working on finalizing the joint venture, as well as exploring other options for the property and the company.
Canalaska Uranium shares added 14.81% in Toronto to C$0.31.