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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Mining

Standard Uranium gives Atco Mining the option to pick up 75% of Athabasca basin project

After exercising the option, the parties intend to establish a joint venture for further developing the project

Standard Uranium gives Atco Mining the option to pick up 75% of Athabasca basin project
High-resolution ground gravity and UAV magnetic surveys being conducted at the Sun Dog property. Image via Standard Uranium.

Standard Uranium Ltd. (TSXV: STND) (OTCQB: STTDF) (Frankfurt: FWB:9SU) signed a term sheet giving Atco Mining Inc. (CSE: ATCM) the option to acquire 75 per cent interest in the Atlantic project in the eastern Athabasca basin.

Jon Bey, the company’s chief executive officer and chairman, said on Tuesday that the company has spent CAD$30 million on exploration programs over the next three years, and another CAD$9 million in exploration in 2024.

The company conducted a high-resolution ground gravity survey on the western claim block in June, identifying multiple subsurface density anomalies that potentially represent substantial alteration zones.

The exploration efforts focus on several high-priority target areas along several kilometers of undertested conductors, targeting high-grade unconformity-related uranium mineralization within the Atlantic project, covering 6.5 kilometers of an 18-kilometer-long, east-west-trending conductive exploration trend hosting numerous uranium occurrences.

After exercising the option, the parties intend to establish a joint venture for further developing the project.

Before exercising the option, the company will operate the project and will have the right to levy a 10-per cent fee on expenditures in the first year, which will increase to 12 per cent for both the second and third year.

Additionally, the company will keep a 2.5-percent net smelter return royalty on the project after exercising the option, with the option to repurchase 1.0 percent at any time for CAD$1 million cash.

“Heading into the 2024 exploration season, we now have 11 projects across the prolific Athabasca basin, with a minimum of seven exploration programs planned, with five of those being drill programs at the Atlantic, Sun Dog, Canary, Ascent and Davidson River projects,” said Bey.

Image via Standard Uranium.

Read more: ATHA Energy to acquire Latitude Uranium and 92 Energy, creating industry’s largest uranium portfolio

Read more: ATHA Energy increases private placement offering up to $22.84M

Athabasca Basin has drawn high value uranium companies

The Athabasca Basin boasts myriad strengths that make it a highly attractive area for mineral exploration and extraction. Foremost among these strengths is its renowned abundance of high-grade uranium deposits, making it one of the most prolific uranium-producing regions globally.

The basin’s geological characteristics, including its unique sedimentary environment and structural complexity, contribute to the formation of these rich deposits.

Companies presently operating in the basin include Cameco Corporation (NYSE: CCJ) (TSX: CCO), Denison Mines Corp.‘s (TSX: DML), as well as ATHA Energy Corp. (CSE: SASK) (OTCQB: SASKF) (FRA: X5U).

ATHA anticipates finalizing its acquisition of 92 Energy Limited (ASX: 92E) and Latitude Uranium Inc. (CSE: LUR) by the end of June, which will notably elevate its standing within the uranium industry.

Upon completion of this process, the combined operator will possess over 7 million acres of exploration territory in Canada’s prime uranium mining jurisdictions. ATHA will also experience a substantial strengthening of its balance sheet, with an estimated cash position of approximately USD$65 million.

 

ATHA Energy Corp. is a sponsor of Mugglehead news coverage

 

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