District Metals, a Canadian mining explorer, has reached a definitive agreement to acquire the four remaining mineral licences at the Viken energy metals deposit in Sweden from an arm’s length vendor.
This move offers the company sole control over the entire deposit, which is said to be one of the largest undeveloped uranium-vanadium-potash-molybdenum-nickel-copper-zinc deposits in the country.
The latest acquisition covers the Norra Leden, Norr Viken, Lill Viken and Storviken mineral licences.
With this move, the company’s Viken property coverage has expanded from 9,367ha to 10,812ha. These licences are valid until late 2025 and cover areas of the deposit that remain open based on historic drilling results.
The Swedish Government's positive stance on potentially lifting the 2018-imposed moratorium on uranium mining and exploration could further enhance the project's prospects.
District's acquisition terms include a payment of C$50,000 ($37,475) to the vendor upon closing, an additional C$50,000 within 30 days after the lifting of the moratorium and a total of 4.5 million District shares to be issued in stages.
A 2% net smelter returns (NSR) royalty has also been agreed upon, with an option for District to buy back the entire royalty for C$8m. The company also has a right to purchase the first 1% of the NSR royalty for C$1m.
The transaction is pending approval from the TSX Venture Exchange.
District CEO Garrett Ainsworth said: “The consolidation of 100% of the Viken Energy Metals Deposit into District is an exciting event for the company, shareholders and stakeholders.
“The Alum Shales in Sweden include critical energy metals for the green energy transition that include uranium, copper, molybdenum, nickel, rare earth elements, vanadium and zinc. Alum Shales also present potential to produce significant potash, which would be of great benefit within the agriculturally dominant Jämtland County.
“The timing of this acquisition is right as the price of uranium continues to rise, and political leaders in Sweden continue to announce their positive stance on potentially lifting the moratorium on exploring for, and mining, uranium.”
Located in the province of Jämtland, about 570km north-west of Stockholm, the Viken Deposit includes well-developed infrastructure, including daily air service and freight facilities. The area is also equipped with electrical power and modern communications.
Historical work by the Geological Survey of Sweden has highlighted the deposit's polymetallic nature.
The Alum Shale, which hosts the deposit, is extensive in Sweden and also valued for its recoverable hydrocarbons.
The indicated mineral resources estimated in 2014 at the Viken deposit total around 43,000 kilotonnes, with 190ppm of triuranium octoxide (U3O8), 340ppm of nickel (Ni), 100ppm of copper (Cu) and 410ppm of zinc (Zn).
