Traction Uranium (CSE:TRAC) has entered into an option agreement with Cosa Resources (TSX-V:COSA) to earn up to 80% of the Aurora Uranium Project in the southeastern Athabasca Basin region of Canada.
Under the option agreement, Traction will solely fund exploration up to C$9.15 million over five years. The company will also complete a series of cash and share payments, totalling $1.5 million and 5 million shares.
The company may accelerate the earn-in and advance exploration work at its discretion.
During the earn-in period, Cosa will act as operator and will be entitled to charge an operator fee.
Upon completion of earning 65% of Aurora, Traction will have the option to assume operatorship of the project.
The Aurora Project spans 17km of prospective strike along the southeastern margin of the Athabasca Basin. No diamond drilling has been completed at the project since 1979, however a review of historical drill logs identified multiple zones of hydrothermal alteration.
In 2024, Cosa completed airborne gravity-gradient and versatile transient electromagnetic surveys that outlined initial target areas for follow-up.
Traction Uranium is a mineral explorer and developer focused on discoveries in Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Traction Uranium
