Terra Uranium (T92) and ATHA Energy have signed a non-binding letter of intent (LOI), which could see both companies working together on the Pasfield Lake Project and the Spire and Horizon projects in Athabasca Basin, Canada.

ATHA Energy may acquire up to a 60% stake in T92’s Pasfield Lake project, while Terra Uranium could gain up to a 70% interest in ATHA Energy's Spire and Horizon projects.

T92 is set to fund C$4.75m over five years to secure this majority stake.

The formation of a joint venture (JV) between the two companies will be contingent upon T92’s fulfilling its expenditure commitments.

Initially, both companies will hold a 50% interest, which will adjust to a 70% interest for T92 and 30% for ATHA Energy upon completion of the fourth and fifth expenditures.

ATHA Energy will also have the option to earn up to a 60% interest in the Pasfield Lake uranium project by either funding C$1m in exploration expenditure or completing a deep hole of at least 1,000m into the geophysical target annually until the end of 2028.

Following this, a JV will be established with T92 holding a 40% interest and ATHA Energy 60%.

The proposed drilling programmes at Pasfield Lake by ATHA Energy are expected to run alongside exploration at its Ridge project.

These activities will explore a structural corridor identified by ambient noise tomography surveys, extending from the Ridge project to Pasfield Lake.

The definitive agreement aims to enhance T92's presence in the Athabasca Basin and enable ATHA Energy to consolidate the Cable Bay Shear Zone.

This move is expected to de-risk the Ridge and Pasfield Lake projects, reduce exploration costs and provide upside exposure.

The Pasfield Lake project, with its multiple conductive zones and seven priority target areas, requires significant exploration including at least two drill holes per target.

T92 remains focused on its portfolio in Saskatchewan's Athabasca Basin and Nunavut's Telon Basin, while ATHA Energy continues its dedication to developing uranium assets for a clean energy future.

Terra Uranium executive chairman Andrew Vigar stated:  “Terra Uranium is delighted to work with ATHA Energy Corp. on exploring its highly prospective Spire and Horizon projects while ATHA helps to advance our Pasfield Lake project.

“In addition, T92 will continue to advance its HawkRock and Parker Lake projects in the Athabasca Basin and the Amer Lake Project in Nunavut.”

In March 2024, T92 signed a letter of intent to purchase the Amer Lake uranium deposit in Nunavut, Canada.