Greenridge has to invest in exploration activities on the Carpenter Lake site. Credit: Evgeny_V / Shutterstock.

Greenridge Exploration has signed a property option agreement with ALX Resources and Pacton Gold to acquire a 100% interest in the Carpenter Lake Uranium Project.

Located in Athabasca Basin, Saskatchewan, the 13,387ha project comprises seven mineral claims.

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To secure this interest, Greenridge is obliged to fulfil several financial commitments.

These include a payment of $200,000 to the optionors, namely ALX Resources and Pacton Gold, and the issuance of 1.5 million common shares, valued at $0.82 each.

The shares are to be distributed between ALX and Pacton at a ratio of 60% and 40%, respectively.

In addition, Greenridge must invest a minimum of $1m in exploration activities on the Carpenter Lake site.

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The shares issued as part of the agreement will be held in escrow, with the first tranche of shares to be released over two years, the second tranche over 18 months, and the third tranche over one year.

Securities issued will also be subject to a statutory hold period of four months and one day from the date of issuance.

Additionally, the project carries a 2% net smelter returns royalty. It has been confirmed that no finders’ fees were paid regarding this arm’s length agreement.

Greenridge CEO Russell Starr said: “The Carpenter Lake Project compliments the company’s uranium portfolio perfectly. Greenridge is now positioned with highly advanced projects in the world’s top uranium jurisdictions, the Athabasca Basin and the Thelon Basin.

“Previous exploration has identified multiple highly prospective priority areas, which will be the main focus of our future exploration programmes.

“The project is fully permitted which allows the company to quickly build on previous exploration efforts with a summer exploration programme, which may include drilling high-priority targets.”