SKRR Exploration (TSXV: SKRR) (FSE: B04Q) entered into an option agreement with F3 Uranium Corp. (CSE: FUU) To buy up to a 70 per cent interest in its Clearwater West Property.
Announced on Monday, the Clearwater West property consists of three mineral claims spanning 11,786 hectares in the uranium-rich Athabasca Basin.
F3 has granted SKRR an option to acquire a 50 per cent interest in the Clearwater West Property. This option can be exercised through various means. These include cash payments totalling 50,000 to F3, issuance of 5 million common shares of SKRR to F3, or completing $3 million in work expenditures on the property within a two-year period.
F3 will also retain a 2.0 per cent net smelter return (NSR) royalty, with the option for SKRR to repurchase 1.0 per cent of the NSR royalty for $1 million. Once the 50 per cent interest earn-in is completed, F3 and SKRR will automatically enter into a joint venture and proceed to negotiate a joint venture agreement.
According to the terms of the Clearwater West Agreement, SKRR also has the option to increase its interest in the property to 70 per cent. This can be achieved by making additional cash payments totaling $50,000 and completing an additional $3 million in work expenditures on the property within three years from the date of the agreement.
Clearwater West cross section. Image via F3 Uranium.
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Clearwater adjacent to other successful properties
Clearwater West is an early-stage exploration project prospective for hosting high-grade uranium mineralization.
The Clearwater West Project is situated approximately 20 kilometres beyond the southern-western boundary of the Athabasca Basin. This region is emerging as a promising area for the establishment of significant uranium mines in Saskatchewan.
Specifically, the project is located 13 kilometres to the south of Fission Uranium‘s (OTCQX: FCUUF) Triple R deposit, which is positioned 7 kilometres beyond the basin edge on its PLS Property. Fission Uranium has recently concluded a Feasibility Study for this deposit. Moreover, Clearwater West is also positioned 17 kilometres to the south of NexGen Energy‘s (TSX: NSE) Arrow uranium deposit.
High-grade uranium mineralization in the Athabasca Basin or its vicinity is typically linked to areas containing graphite and sulphide and display hydrothermal alteration. These zones often show conductive characteristics identifiable through electromagnetic (EM) conductors. In 2014, a comprehensive airborne survey was conducted across the entire property, revealing multiple parallel conductive trends.
Some of these conductive trends merit investigation, while others have already undergone detailed ground surveys such as Time Domain EM and DC Resistivity in 2015. These surveys have helped define promising drill targets in those areas. However, SKRR advises caution in assuming that the results or discoveries made on neighboring properties will necessarily be replicated on the Clearwater West Property.
SKRR is a Canadian-based exploration company focused on precious and base metals. It holds properties in British Columbia and Saskatchewan, which are widely recognized as some of the top mining jurisdictions globally.
SKRR share were flat on Monday at $0.045 on the TSX Venture Exchange.
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