SKRR Exploration Inc. (TSXV: SKRR) (FSE: B04Q) has signed a letter of intent with F3 Uranium Corp. (CVE: FFU) to acquire up to a 70 per cent stake in the Clearwater West Project in Saskatchewan.
Under the LOI, Vancouver-based SKRR will make staged cash and common share payments to F3 over a 3-year period. The Clearwater West Project is situated about 20 kilometres beyond the southern-west edge of the Athabasca Basin, which is expected to emerge as a prime location for the development of significant uranium mines in Saskatchewan.
The property consists of three adjacent mineral claims spanning 11,786 hectares, directly south and contiguous to Fission Uranium’s (TSX: FCU) (OTCQX: FCCUF) property. SKRR advises that previous findings or discoveries on nearby lands do not necessarily indicate the results that can be accomplished on the Clearwater West Project.
The cash payments include $25,000 due on or before the end of this year with an additional $25,000 due on or before the end of 2024 and an additional $50,000 ($100,000 total) due on or before Dec. 31, 2025.
SKRR must also issue 1 million common shares upon execution of the option agreement and exchange approval of the transaction. It must also issue a total of 5 million common shares by the end of 2025.
Expenditures on the Clearwater West Project include $1 million within one year of the exchange approval, an additional $2 million within two years and an additional $3 million within three years of the exchange approval.
F3 will receive a 2 per cent Net Smelter Returns Royalty (NSR Royalty), and SKRR has the option to repurchase 1 per cent (one-half) of the NSR Royalty for $1 million.
The LOI is subject to exchange approval, and further details about the proposed transaction will be provided in a comprehensive news release if and when the parties enter into the option agreement.
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“We are very excited to not only work with F3 and their outstanding team, but also to have an opportunity to acquire a majority stake in an attractive property in the Athabasca Basin region, home to some of the world’s largest uranium mining operations,” SKRR CEO Sherman Dahl said.
“At SKRR we believe that the PLS/PLN area has the potential to generate further large discoveries, as demonstrated by the recent JR zone discovery at PLN,” Dahl added.
“The Clearwater West project is near large uranium discoveries, including the Arrow and Triple R deposits.”
SKRR’s primary focus is on exploring the Trans-Hudson Corridor in Saskatchewan, with the aim of discovering world-class precious and base metal deposits. Despite being renowned in geological circles, the Trans-Hudson Orogen has been substantially under-explored in Saskatchewan.
SKRR stock went down by 12.50 per cent to $0.035 on the Canadian Venture Exchange.
F3 Uranium Corp. Announces LOI with SKRR for the Clearwater West Project https://t.co/USHpLLb6cy $FUU $FUUFF#News #NewsRelease #LOI #Uranium #Eploration #Mining pic.twitter.com/gmFxq7fjV0
— F3 Uranium Corp (@F3Uranium) April 10, 2023
Kelowna-based F3 currently has 16 projects in the Athabasca Basin. Several of F3’s projects are near large uranium discoveries, including, Arrow, Triple R and Hurricane deposits. F3 has recently completed its winter exploration/drill program, expanding and growing its JR zone discovery on its PLN project.
“We are excited to work with Sherman Dahl and his hard-working team. F3 has 16 uranium projects in the Athabasca Basin and working with groups like SKRR will allow F3 to advance exploration and unlock potential value for our company and shareholders,” F3 CEO Dev Randhawa said.
Randhawa explained that F3 will be the operator during the earn-in period, having assembled the team responsible for three major uranium discoveries in the Athabasca Basin, the J Zone at Waterbury Lake (which was sold to Denison Mines), Fission Uranium’s Triple R deposit and most recently F3’s JR Zone at PLN.
“Through this LOI, F3 will receive cash and operator fees (up to $700,000), 7 per cent ownership in our partner pre-financing and up to $5.4 million in work expenditures to advance exploration on the Clearwater West Property,” Randhawa explained.
