The uranium and critical minerals explorer Forum Energy Metals Corp. (TSX-V: FMC) is giving Global Uranium Corp. (CSE: GURN) the option to take up to three-quarters of its major interest in a Saskatchewan mining project. Forum is the site’s operator and will continue to be while Global provides funding.
Announced Thursday, the option agreement will see that Forum receives the equivalent of C$20 million in cash and stock from Global Uranium over the next seven years. The Great Northern site in discussion is a joint venture between Forum, NexGen Energy Ltd. (TSX: NXE), Orano Canada and Cameco Corporation (TSX: CCO).
The last drilling completed on the property was in 2013 as the uranium market was taking a downturn post-Fukushima. It sits about 70 kilometres west of Uranium City near the Alberta border, spanning over 13,000 hectares.
“We’re really excited to get back at it with this project,” Forum chief executive Rick Mazur said in an interview Friday. “Global really likes what they see in it and likes the team involved.”
Historically, Great Northern has yielded intercepts with grades as high as 5.7 per cent yellowcake (U3O8) over 8.5 metres.
#StockBox #FMC #Uranium@StockBoxMedia spoke with Rick Mazur, President & CEO @ForumEnergyMC regarding the company's recent agreement with Global Uranium Corp.
Watch below ⬇️https://t.co/wxXUXwNzmh
➡️ Rick Mazur discusses Forum Energy Metals' option agreement with Global…
— StockBox®️ 🎙️📈📽️ (@StockBoxMedia) May 31, 2024
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NexGen intercepts high-grade mineralization to the south
The Rook I project’s developer just received favourable assays on core samples pulled from its Patterson Corridor East property. Most notably, 0.78 per cent U3O8 over 13.5 metres, including 0.5 metres grading at 10 per cent U3O8, were intercepted.
NexGen has positioned itself to become one of the world’s most crucial suppliers of uranium. The company’s Arrow deposit is one of the richest resources on Earth.
“It’s an incredibly powerful project economically,” NexGen chief executive Leigh Curyer said in a recent interview. “We are entering a new era for the market in nuclear fuel, which I believe is unprecedented.”
Work at Rook I has been ongoing since 2014 and first uranium production isn’t expected for over three years. NexGen still needs some final regulatory approvals for the operation.
In addition to its joint venture at Great Northern, the company is also actively involved in a partnership with ATHA Energy Corp. (TSX-V: SASK) (OTCQB: SASKF) (FRA: X5U). ATHA holds a 10 per cent carried interest on certain portions of NexGen’s land package.
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