The British Crown had claimed two large areas north-west of the Canadian colony, known as Rupert's Land and the North-Western Territory, and assigned them to the Hudson's Bay Company. In 1870, the company relinquished its claims for £300,000 ($1.5 million), assigning the vast territory to the Government of Canada. Subsequently, the area was re-organized into the province of Manitoba and the Northwest Territories. The Northwest Territories were vast at first, encompassing all of current northern and western Canada, except for the British holdings in the Arctic islands and the Colony of British Columbia; the Territories also included the northern two-thirds of Ontario and Quebec, and almost all of present Manitoba, with the 1870 province of Manitoba originally being confined to a small area in the south of today's province. The British claims to the Arctic islands were transferred to Canada in 1880, adding to the size of the Northwest Territories. The year of 1898 saw the Yukon Territory, later renamed simply as Yukon, carved from the parts of the Northwest Territories surrounding the Klondike gold fields. On September 1, 1905, a portion of the Northwest Territories south of the 60th parallel north became the provinces of Alberta and Saskatchewan. In 1912, the boundaries of Quebec, Ontario, and Manitoba were expanded northward: Manitoba's to the 60° parallel, Ontario's to Hudson Bay and Quebec's to encompass the District of Ungava.