Saskatchewan miners ATHA Energy Corp. (TSX-V: SASK) (OTCQB: SASKF) (FRA: X5U) and Terra Uranium Ltd. (ASX: T92) have laid the groundwork for a mutually beneficial joint venture in the Athabasca Basin.
Pursuant to a non-binding letter of intent crafted this week, the companies will soon have the option to acquire major interests in each other’s properties. ATHA and Terra are working to finalize a definitive joint venture agreement in this regard.
Specifically, ATHA will have the option to acquire up to a 60 per cent interest in Terra’s Pasfield project. Terra will subsequently be able to obtain up to 70 per cent of ATHA’s Spire Horizon Projects.
“Terra Uranium is delighted to work with ATHA Energy Corp. on exploring its highly prospective Spire & Horizon Projects while ATHA helps to advance our Pasfield Lake project,” Terra’s Executive Chairman, Andrew Vigar, said in news release.
ATHA will commence drilling at Pasfield next year. Seven high-priority targets have been identified there. Meanwhile, Terra says ATHA’s projects will provide exposure to uranium targets at a conveniently shallow depth.
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Terra must spend C$4.75 million on exploration
That sum will have to be put into the Spire and Horizon Projects by September 2028 to acquire a 70 per cent stake.
On the other front, ATHA will be required to spend C$4 million at Pasfield by the end of 2028 to solidify its 60 per cent interest in the project.
Terra has invested significant capital into setting up an exploration camp at Pasfield and suitable road access. ATHA will benefit from this in the coming years.
Both companies are currently active in Nunavut too — an increasingly appealing uranium mining region.
Terra saw its stock price rise by over 38 per cent at the beginning of August when it reported rock chip assays with up to 7,950 parts per million uranium at its Amer Lake site in the territory.
Moreover, recent drill holes yielding favourable grades at ATHA’s Angilak project in Nunavut have significantly expanded the site’s uranium mineralization footprint.
ATHA Energy is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
