Terra Uranium (ASX:T92) has signed definitive option agreements with ATHA Energy Corp (TSX-V:SASK), that will give both companies the option to acquire a percentage of each other’s projects in Canada.
By entering into these agreements, Terra Uranium says it will increase its footprint in the “highly prospective” Athabasca Basin by more than 60,000 hectares.
Under the agreements, Terra Uranium has an exclusive right and option to acquire up to 70% of ATHA Energy’s Spire and Horizon projects by incurring a minimum C$4.75 million ($5.12 million) in statutory exploration expenditure.
Terra Uranium says it will immediately commence operations on the shallower uranium targets at the Spire and Horizon projects, and under the agreement must incur at least C$750,000 of statutory exploration expenditure on or before 20 December 2024.
Once the initial three agreed expenditures are complete, both companies will form a joint venture (JV), with Terra Uranium’s initial interest totalling 50%.
Terra Uranium’s 50% interest will increase to 70% once the fourth and fifth expenditures are satisfied, with ATHA Energy holding the remaining 30% interest.
Meanwhile, ATHA Energy has the option to acquire up to 60% of Terra’s Pasfield Lake Uranium Project via a four-staged process.
To secure a 15% interest in Pasfield Lake, ATHA Energy can either fund C$1 million in exploration expenditure or complete the drilling of one deep hole of at least 1,000m into the geophysical target before the end of 2025.
ATHA Energy must continue either funding C$1 million in expenditure or complete one deep hole of 1,000m into the Pasfield Lake target before the end of each year, up until 31 December 2028.
Once the fourth option is satisfied, both parties will form a JV on the project, with Terra holding an initial 40% participating interest in the Pasfield JV and ATHA Energy holding the remaining 60%.
Executive Chairman Andrew Vigar says the announcement “sees a major transformation for our company”.
“We will continue to actively advance our 100% owned HawkRock, Parker Lake, Yurkowski, Engler, and Rapid River projects with field work on Yurkowski and HawkRock planned for later this year.”
The Pasfield Lake Project contains anomalous geophysical features over more than 6km detected across multiple depths and lithologies, and has interpreted strong conductors and alteration coincident with historical regional geoscience.
The Spire and Horizon projects cover 60,965 hectares and lie on the eastern rim of the Athabasca Basin in Saskatchewan, Canada. The properties sit within the Needle Fall Shear Zone with associated cross-cutting regional scale Tabernor faults known for hosting uranium mineralisation.
Further, Terra Uranium has also engaged with exploration services company Axiom Exploration Group to support field operations in Canada. The company says Axiom Exploration has vast on-ground experience in the Athabasca Basin and wider Canada.
Terra Uranium is a mineral explorer focused on discoveries in the Athabasca Basin, Canada — which is a known uranium province hosting some of the world’s “largest and highest grade” uranium deposits.
Write to Aaliyah Rogan at Mining.com.au
Images: Terra Uranium
