Terra Uranium advances Amer Lake deal

Terra Uranium (ASX:T92) has tapped investors for $500,000 through a placement to advance its acquisition of the 15.3-million-pound Amer Lake Uranium Project located in Nunavut in Canada.

Peak Asset Management has been retained to lead the raise.  

Amer Lake sits in the Baker Lake region of north Amaruq and consists of 6 claims totalling 1,190 hectares, plus another 2 claims totalling 1,526 hectares that have been staked by Terra. 

The mineralisation at Amer Lake is of the sandstone-hosted type, similar to large near-surface deposits in the US, Central Asia, Australia, and Africa amenable to bulk or ISR mining.

The Main Zone deposit consists of a series of stacked lenses that outcrop at surface for a 1.7km strike zone and dip to the south between 10 and 40 degrees.

The project hosts a foreign non-JORC-compliant — but Canadian NI 43-101-compliant — resource measuring more than 17.82 million tonnes at 380 parts per million (ppm) triuranium octoxide (U3O8), representing 15.3 million pounds of contained U3O8 based on a cut-off grade of 100ppm. 

It also sits about 20km north of the operational Amaruq Gold Project, which features ‘extensive’ infrastructure. The project demonstrates assay values from the mineralised arkose horizons ranging from 5,000ppm to 15,000ppm U3O8

Executive Chairman Andrew Vigar says while it’s an exciting opportunity, the acquisition of Amer Lake will not take away from the company’s current and future opportunities at its core assets in the Athabasca Basin.  

“The 6 claims at Amer Lake Uranium that overlie this foreign, non-JORC resource of 15.3 million pounds of U3O8, have been acquired on very competitive terms. We believe this to be a highly accretive acquisition of a large, defined resource, and that this milestone represents a significant value proposition for investors.”

Terra, which has a $10.01 million market capitalisation, says up to 3.125 million new shares will be issued to sophisticated and professional investors at $0.16 per share, a premium to the last closing price. 

Shares will be issued on or around 9 April 2024.

The funds will also be used for general working capital while evaluation of other uranium opportunities that complement Terra’s core projects continues. 

In a recent interview (above), Vigar discusses the company’s recent expansion of its Canadian landholding and how it’s blazed a trail in the Cable Bay Shear Zone.

On 28 March 2024, Terra signed a binding letter of intent to acquire Amer Lake.

Completion of the deal is subject to various conditions, including Terra completing financial, legal and technical due diligence, and both parties receiving all consents and approvals. 

Any uranium production from the 6 claims which make up Amer Lake will be subject to a 1.5% net smelter return royalty.   

Terra Uranium is a mineral explorer with an existing position in the Athabasca Basin in Canada — a uranium province hosting some of the world’s largest and highest-grade uranium deposits. 

Terra’s core projects include the HawkRock, Parker Lake, and Pasfield Lake projects, which, along with the Rapid River and Yurkowski projects, sit in the Cable Bay Shear Zone.

Write to Adam Drought at Mining.com.au

Images: Yajun Dong/Pexels

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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.