Infini Resources (ASX:I88) has struck a deal to buy two projects in Canada’s uranium hotspot – the Athabasca Basin.
The junior explorer, which has a market capitalisation of $35.8 million, has entered into a binding agreement with U Energy Metals to purchase the Reynolds and Boulding Lake uranium projects in Saskatchewan.
To settle the acquisition, Infini has agreed to issue $1.6 million worth of shares and pay $100,000 in cash, as well as issue $750,000 worth of performance rights that will vest once certain drilling and resource milestones have been met.
The Athabasca Basin, located in northern Saskatchewan and Alberta, is one of the world’s richest sources of high-grade uranium, supplying about 20% of the world’s uranium.
The basin spans 100,000 km2 and hosts major deposits including Cameco’s (TSX:CCO) Cigar Lake and McArthur River mines.
The Reynolds and Boulding Lake projects collectively cover 931km2 and are located within 100km of the McArthur River and Eagle Point uranium camps.
Infini says Reynolds contains reported anomalous uranium in lake sediments and radiometric anomalies in proximity to the underexplored Needle Falls shear zone.
Meanwhile, Boulding Lake sits directly adjacent to claims containing several radioactive boulders.
Infini notes there is the potential for a primary uranium source within the project area, which is indicated by a magnetic low (interpreted basin sediments) and south-west trending ice flow directions.
Managing Director Charles Armstrong says following an extensive review, Infini believes the assets have the potential to deliver substantial long-term value for shareholders.
“As global demand for clean, reliable energy grows, securing high-potential uranium exploration projects is increasingly vital to addressing the world’s future energy needs,” Armstrong says.
“These new assets complement our vision of building a diversified portfolio of uranium targets, alongside our Portland Creek Uranium Project.”
Infini’s main focus remains on advancing its flagship Portland Creek Uranium Project in Newfoundland, where drilling is set to ramp up in coming weeks depending on weather conditions.
The acquisition is still subject to any necessary regulatory, statutory and governmental consents and approvals, with completion anticipated by the end of March.
Geophysical surveys will begin shortly across the Reynolds and Boulding Lake projects to generate target for follow-up exploration.
Write to Angela East at Mining.com.au
Images: Infini Resources
