ENRG Elements (ASX:EEL) is planning exploration work after agreeing to acquire the Lamont Lake Uranium Project in Saskatchewan, Canada.
The Lamont Lake Project lies 85km northwest of Uranium City, encompassess four mineral claims, and covers a 22km2 area.
Under the binding agreement, ENRG will pay C$27,500 in cash to Marino Specogna, and issue 33.33 million shares, subject to completing due diligence activities.
Within six months of completion, the company will pay $100,000 in cash, or issue $100,000 worth of shares to the vendor.
ENRG says the acquisition, which is expected to be completed within two months, presents the company with a compelling near-term exploration prospect and enhances diversification within the project portfolio.
The company’s technical team continues to review historical exploration results and geological data associated with the new holding, which will form the basis for an exploration program.
Managing Director Caroline Keats says Lamont Lake represents a valuable opportunity for the company, offering optionality and near-term exploration potential, while also contributing to its strategy of diversifying jurisdictional risk.
“The acquisition follows an internal review by the company’s management and technical team, affirming the project and its potential as a highly prospective area that contains historic, shallow uranium occurrences,” Keats says.
“The company continues to review historical data from the project and expects to complete exploration planning over the coming weeks. The company is also assessing a number of other strategic opportunities to bolster its presence in key markets.”
ENRG says the project’s geology and structural setting suggest similarities with nearby significant mineralisation and uranium production, which provides a considerable opportunity for ENRG.
The company notes as plans are finalised and exploration work begins, updates will be made to the market in due course.
Write to Aaliyah Rogan at Mining.com.au
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