Basin Energy (ASX:BSN) has completed the sale of its Marshall Uranium Project in Canada to Green Canada Uranium (TSX-V:GCC), retaining exposure through shares and a project buyback option.
Basin can receive up to C$800,000 ($804,670) in cash and has secured an initial 11.54% interest in the newly listed buyer.
The cash consideration comprises an initial C$150,000 payment, up to three annual payments of the same amount, and two further C$100,000 instalments due 15 and 24 months after completion.
The transaction follows Green Canada Uranium’s reverse takeover and completion of a C$2.85 million financing.
Basin Energy Managing Director Pete Moorhouse says the sale removes Basin’s funding obligations for Marshall while freeing capital for its Sybella-Barkly Rare Earth Project in northwest Queensland.
“We are excited to conclude this sale, which will see the Marshall Uranium Project explored at no cost to Basin shareholders whilst maintaining meaningful upside exposure to this exciting asset through our equity interest, buyback option, and right of first refusal,” Moorhouse says.
As reported by Mining.com.au on 10 August, Basin has recommenced drilling at the Newmans discovery in Sybella-Barkly to test the continuity of a 3.3km rare earth mineralised corridor.
Basin can repurchase a 25% interest in Marshall for C$1 million within five years or before Green Canada Uranium spends C$10 million on exploration. Basin also holds a three-year right of first refusal over any future sale.
Green Canada Uranium must spend at least C$1.5 million on Marshall within 24 months to maintain the mineral rights in good standing.
Basin and joint venture partner CanAlaska Uranium (TSX-V:CVV) have also granted Green Canada nine months of exclusivity to negotiate an earn-in for up to 51% of the North Millennium Project in Canada’s Athabasca Basin. Basin received another 400,000 Green Canada shares for granting the exclusivity.
Marshall and North Millennium are located less than 11km from Cameco’s (TSX:CCO) Millennium deposit, which hosts 104.8 million pounds @ 3.8% uranium oxide.
Basin Energy is a critical minerals explorer focused on rare earth and uranium discovery in northwest Queensland, with additional uranium interests in Canada and the Nordic region.
Write to France Pinzon at Mining.com.au
Images: Basin Energy
