Basin Energy (ASX:BSN) has signed a binding agreement to buy a portfolio of projects considered prospective for uranium, copper, gold, silver, niobium, and rare earths in Scandinavia.
The Sweden-based projects comprise the Virka, Björkberget, Rävaberget, Prästrun, and Håkantorp assets. Meanwhile, Basin will add the Puokio, Löttö, Temo, Eronlampi, and Palmottu projects in Finland to its portfolio.
Basin has entered into a share purchase plan to acquire Normetco AS, which is the registered owner of the projects in Sweden and Finland.
Basin will issue 18.48 million shares and 4.62 million options exercisable at $0.10 within three years.
The company has also agreed to milestone payments totalling $2 million, paid in two equal tranches, upon the definition of a resource of at least 10 million pounds of triuranium octoxide at or above 0.01% and the definition of a resource of at least 20 million pounds of triuranium octoxide at or above 0.03%.
Managing Director Pete Moorhouse says the company has been assessing opportunities since inception that fit the exploration criteria for “potential world class discoveries”.
“We are excited to add this complimentary portfolio to our existing asset base,” Moorhouse says.
“The acquisition provides multiple near-surface targets for uranium and green energy metals that can be advanced cost effectively. Whilst exploration success was achieved in the 1980s, very little modern exploration has occurred.
“As of 2021, Sweden’s known uranium assets make up 27% of Europe’s uranium resources.”
The Virka Project, along with its Björkberget and Rävaberget prospects, is positioned in the heart of the Arjeplog-Arvidsjaur shear-hosted uranium district in Sweden.
Historical regional geological mapping and boulder tracing records show several surface anomalies in lead, zinc, silver, and gold associated with fault structures.
The Björkberget and Rävaberget prospects have similar geological characteristics to Virka, however there is no reportable geochemical data that has been found yet. The prospects are yet to be assessed using modern exploration techniques.
The Prästrun Project, located in central Sweden, previously returned anomalous niobium and uranium via rock chip samples including up to 0.45% triuranium octoxide, 1.2% niobium, 0.07% tantalum, and 0.26% zirconium.
Meanwhile, the Håkantorp Project sits within a historic iron ore mining district within the southern Bergslagen province.
All of the Finland projects are in reservation status, which gives the holder exclusive rights to apply for an exploration licence for up to 12 months from grant.
Basin says the Palmottu Project’s historical work provides confidence in the style or target allowing targeted follow-up work. Based on historical drilling undertaken and anomalous historic rock chips recorded, it is interpreted to be prospective for green energy metals.
At Löttö, historical work uncovered numerous uranium occurrences within bedrock and in glacial cove. An initial assessment has been conducted and is currently under review.
The Temo Project sits adjacent to the Siilinjarvi Phosphate Mine — which is Finland’s largest open pit mine, according to Basin Energy.
Meanwhile, the Puokio and Eronlampi projects have been subject to historic rock chip sampling and limited drilling, however underlying data has yet to be sourced for these projects.
Moorhouse says the company is focused on advancing its existing uranium portfolio in the Athabasca Basin, however, there is an opportunity for broader exposure to uranium and green energy metal discoveries.
“We will update the market with detailed project-level information shortly as we conduct initial work programs and further data verification of this exciting new package.”
Basin Energy is a green energy metals-focused explorer and developer that owns three projects in Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Stock & Basin Energy
