Atomic Eagle (ASX:AEU) has entered a binding option agreement to acquire the Sitwe Uranium Project in the Luangwa Valley of northeastern Zambia through its wholly owned subsidiary.
The acquisition of this asset will expand Atomic Eagle’s uranium footprint by an additional 429km2 of landholdings, increasing the company’s overall holdings by 38%.
The company must incur a minimum of US$200,000 ($279,208) in exploration and licence-related expenditure ahead of 30 June 2027.
Atomic Eagle will be eligible to exercise the option to acquire the Sitwe Project for a cash consideration of US$400,000.
The company is planning its initial work program for the project, which is expected to include mapping and ground radiometrics to determine prospective areas for drill testing.
Concurrently, Atomic Eagle is conducting a 30,000m drilling campaign at its flagship Muntanga Uranium Project, intended to increase the project’s resource estimate, as reported by Mining.com.au.
Further assays from the drilling program are expected in the coming weeks.
CEO Phil Hoskins says the addition of this asset to Atomic Eagle’s portfolio expands the company’s uranium footprint and consolidates its position as a “leading uranium explorer and developer” in Zambia.
“Zambia is a well-established and supportive mining jurisdiction, and we continue to see significant opportunities to build scale through the acquisition and systematic exploration of high-quality uranium assets,” Hoskins says.
“Sitwe complements our flagship Muntanga Project by adding a large, prospective licence position in a highly endowed basin, with encouraging historical results and clear potential for further discovery.
“Importantly, the option structure allows us to advance this opportunity in a disciplined manner while maintaining flexibility as we continue to grow our broader uranium portfolio in Zambia.”
Shallow uranium intercepts returned from Sitwe North in historical drilling campaigns include 1m @ 1,620 parts per million (ppm) from 35m; 1m @ 1,080ppm from 42m; 2m @ 639ppm from 37m; and 5m @ 566ppm from 7m.
Atomic Eagle is a uranium explorer and developer focused on advancing the Muntanga Project in Zambia.
Write to Maddison Elliott at Mining.com.au
Images: Atomic Eagle
