TSX-V-listed ATHA Energy has announced a nonbinding letter of intent with ASX-listed Terra Uranium for potential option and joint venture (JV) agreements.
Should the companies negotiate a definitive agreement, Terra Uranium could earn a 70% interest in ATHA’s Spire and Horizon properties, while ATHA could earn up to a 60% interest in Pasfield’s Lake property.
The Spire Horizon projects comprised 12 mineral claims totalling 60 965 ha, located on the eastern rim of the Athabasca basin, Saskatchewan, within the company’s East Rim exploration district.
The Pasfield project is comprised of 16 mineral claims totalling 68 768 ha, located within the Athabasca basin. The project is situated within the Cable Bay Shear Zone, contiguous to the north of ATHA’s Ridge project within the Cable Bay exploration district.
ATHA pointed out that Terra Uranium had previously made significant investments into project infrastructure at its Pasfield project, including road access and a year-round exploration camp. As part of the option, ATHA will have access to this infrastructure, which will significantly decrease capital costs for any future exploration programme at Ridge and the Pasfield project.
To acquire its 70% interest in the Spire Horizon project, Terra Uranium must incur $4.75-million in exploration expenditure.
For the Pasfield option, Terra Uranium will grant ATHA four exclusive and separate rights and options to acquire undivided legal and beneficial interests in the project. 