Australia’s junior uranium explorer Basin Energy (ASX: BSN) has entered an exploration agreement with local First Nations groups in the Athabasca Basin pertinent to three of its active projects in the region, thereby confirming their support of the company’s exploration work.
On Friday, the company announced the agreement’s signing. It formalizes the relationship between the company and the Ya’thi Néné Lands and Resources Office (YNLR) representing the Denesuline First Nations and Athabasca communities.
Basin Energy now has a framework for consultation, sharing of information and environmental management with the local groups relating to exploration and evaluation work at its Geikie, North Millenium and Marshall uranium projects. The company will be providing members of those groups with employment and training opportunities while also supporting development initiatives in their communities.
“We are pleased to enter into this agreement with Basin Energy, as they are approaching development in our territory in a positive way that respects our communities and includes our knowledge and aspirations,” said Mary Denechezhe, Chairperson of the YNLR.
The Athabasca Basin currently supplies approximately 20 per cent of the world’s uranium and has the highest-grade uranium mine on Earth at Cigar Lake.
“We look forward to continuing to work closely with the Athabasca Denesuline First Nations and Athabasca communities involved and are grateful for their involvement as we explore the exciting opportunities that the eastern Athabasca has to offer,” said Pete Moorhouse, Managing Director of Basin Energy.
CanAlaska Uranium Ltd. (TSX-V: CVV) (OTCQX: CVVUF) is a major shareholder in Basin Energy, having a 19.98 per cent stake.
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The price of uranium is on the rise
The Athabasca Basin is arguably the world’s best uranium mining jurisdiction, largely underexplored and containing vast deposits of the commodity.
The company holding the largest land package in the region is ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF), a well-funded junior explorer that recently completed the largest electromagnetic survey in the uranium mining jurisdiction’s history.
ATHA aims to have the highest priority targets in its vast land package defined by the end of H1 next year before commencing drill testing on them in the latter half of 2024 to locate new high-grade deposits.
The rising price of uranium is making the Athabasca Basin an increasingly attractive investment. On Monday, TradeTech LLC announced that its uranium spot price had climbed to the highest dollar figure seen since March 2008 at US$73.50 per pound.
“There is a growing demand profile for nuclear power globally as licenses are extended for existing nuclear power plants and new build plans continue to emerge in nations seeking clean, reliable, and secure energy supplies,” said the uranium and nuclear analyst.
ATHA Energy shares are currently trading for $0.99 on the Canadian Securities Exchange. The company has $25 million on hand.
Hedge funds have been pouring money into uranium stocks in recent days, such as Terra Capital, Argonaut Capital Partners and Segra Capital.
ATHA Energy is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
