Mega Uranium (MGA-T) has signed an option agreement to explore
Under the deal, Mega can earn a 50% interest by spending $6 million on exploration and issuing 100,000 Mega shares over three years.
Mega would then have the opportunity to pay CanAlaska another $2 million and 100,000 shares to acquire an additional 5% interest.
For now CanAlaska will act as the operator for the project but if a joint venture is formed between the two companies, Mega will have the choice to become the operator.
The Poplar project was explored by E&B Exploration in 1979 but the targets generated through airborne and marine geophysics were never followed up on.
Now, with improved technology, CanAlaska has hired Geotech Surveys to do modern airborne magnetic and electromagnetic surveys, which should be finished by December.
The companies expect to do lake and ground geophysical surveys and to follow-up on main targets in 2008.
The Poplar property totals 1,100 sq. km and the project extends for 70 km from Poplar Point towards Uranium City and the Gunnar uranium mine, covering the majority of the eastern end of Lake Athabasca, and portions of the shoreline, including mineral showings east of the Gunnar mine.
The targets in the area are mainly shallow unconformity deposits that extend to about 200 metres depth.
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