Terra Uranium has entered into definitive option agreements with ATHA Energy, providing both companies with options to acquire stakes in each other's Canadian projects.
This collaboration aims to expand by 60,965ha Terra Uranium's presence in the Athabasca Basin, a region known for its uranium potential.
Under the terms of the agreements, Terra Uranium has the exclusive right to acquire up to 70% of ATHA Energy's Spire and Horizon projects by spending a minimum of A$7.6m ($5.12m) on exploration.
Terra Uranium plans to begin immediate exploration of the shallower uranium targets at these sites, with a commitment to spend at least C$750,000 (A$808,917) by 20 December 2024.
Upon completion of the initial three expenditures, the companies will establish a joint venture (JV), with Terra Uranium initially holding a 50% interest.
This stake could increase to 70% following the completion of the fourth and fifth expenditures, leaving ATHA Energy with a 30% interest.
In contrast, ATHA Energy can acquire up to 60% of Terra Uranium's Pasfield Lake Uranium Project via a four-stage process.
ATHA can earn a 15% interest by either funding C$1m in exploration or drilling a deep hole of at least 1,000m into the geophysical target by the end of 2025.
To maintain its acquisition path, ATHA Energy must meet the same funding or drilling requirement annually until 31 December 2028.
Once the fourth stage is complete, a JV will be formed for the Pasfield Lake project, with Terra Uranium holding a 40% interest and ATHA Energy 60%.
Terra Uranium executive chairman Andrew Vigar said: “Terra Uranium has now signed the definitive option agreements to work with ATHA Energy on exploring their highly prospective Spire and Horizon Projects while ATHA has the option to drill our Pasfield Lake Project.
“We will continue to actively advance our 100% owned HawkRock, Parker Lake, Yurkowski, Engler and Rapid River Projects with field work on Yurkowski and HawkRock planned for later this year."
In March this year, Terra Uranium executed a binding letter of intent to acquire the Amer Lake Uranium Deposit in Nunavut, Canada.
