ATHA Energy Proposes Option Agreements with Terra Uranium
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ATHA Energy Announces Proposed Option Agreements
ATHA Energy Corp. (TSXV: SASK) (FRA: X5U) (OTCQB: SASKF) is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") with Terra Uranium Ltd. (ASX: T92), whereby the parties will work to negotiate a definitive option and joint venture agreement for T92 to earn an option to acquire a 70% interest in ATHA’s Spire and Horizon properties (the "Spire Horizon Projects") and a definitive option and joint venture agreement for ATHA to earn an option to acquire up to a 60% interest in T92’s Pasfield Lake property (the "Pasfield Project").
Overview of Spire Horizon Projects
The Spire Horizon Projects are comprised of 12 mineral claims totalling 60,965 hectares, located on the eastern rim of the Athabasca Basin within the Company’s East Rim Exploration District. The properties are situated within the Needle Falls Shear Zone ("NFSZ"), where associated cross-cutting regional scale tabernor fault – known for hosting uranium mineralization – have been identified. The Spire Horizon Projects are highly prospective for uranium exploration, with numerous uraniferous boulders and outcrops identified. Recent exploration activities in the area include ATHA’s Gemini Project, which contains the shallow basement-hosted, high-grade uranium GMZ discovery. High-grade copper showings in outcrops have also been identified, along with anomalous copper returned from testing of lake sediments. During ATHA’s maiden 2023 Exploration Program, the Company completed electromagnetic ("EM") surveys utilizing Xcite’s MobileMT (MMT) & Mag system, as well as Geotech’s VTEM-max system. Those surveys identified approximately 144 km of cumulative conductors associated with the NFSZ and regional cross-cutting structures, demonstrating a high concentration of shallow prospective exploration targets for discovery of uranium mineralization.
Details of Pasfield Lake Project
The Pasfield Project is comprised of 16 mineral claims totalling 68,768 hectares, situated within the Athabasca Basin. The Pasfield Project is located within the Cable Bay Shear Zone, contiguous to ATHA’s Ridge Project within the Company’s Cable Bay Exploration District. During ATHA’s maiden 2023 Exploration Program, an EM survey was completed on Ridge using Xcite’s MMT system. Subsequently, in early 2024, ATHA deployed GNR’s airborne gravity system and Space Fleet’s Ambient Noise Tomography ("ANT"). These surveys identified structural corridors extending from Ridge to the Pasfield Project, which T92’s previous ANT survey detected a low velocity anomaly, indicating a prospective alteration halo. T92 has also made significant investments in infrastructure at their Pasfield Project, including road access and a year-round exploration camp, which will reduce capital costs for future exploration programs.
Option Agreements and Terms
Spire Horizon Option Details
In accordance with the terms of the LOI and upon entering into a Definitive Agreement, ATHA shall grant T92 the right and option to acquire up to a 70% interest in the Spire Horizon Projects (the "Spire Horizon Option") in consideration for incurring a minimum of $4,750,000 in exploration expenditures. T92 must incur at least $750,000 of statutory exploration expenditure by a designated date, along with increased expenditures at subsequent milestones outlined in the agreement.
Pasfield Project Option Terms
According to the LOI terms, upon entering into a Definitive Agreement, T92 shall grant ATHA exclusive rights and options to acquire interests in the Pasfield Project. Each Pasfield Option provides the opportunity to acquire an undivided 15% interest through specified funding or drilling activities. After exercising each option, ATHA can convert its interest into a net smelter returns royalty ("NSR") for a potential total of 4%. The joint venture on the Pasfield Project will be formed upon fulfilling specific option criteria.
About ATHA Energy Corporation
ATHA is a Canadian mineral company focused on uranium acquisition, exploration, and development to reach a cleaner energy future. Holding a balanced portfolio of 100%-owned uranium projects, including the Angilak Project in Nunavut and CMB Discoveries in Labrador, ATHA is well-positioned to drive value in the uranium market. The company has a significant exploration land package across prominent uranium basins and a 10% carried interest in key Athabasca Basin exploration projects operated by NexGen Energy Ltd. and IsoEnergy Ltd.
Frequently Asked Questions
What are the Spire Horizon Projects?
The Spire Horizon Projects consist of 12 mineral claims covering approximately 60,965 hectares in the Athabasca Basin, known for its uranium mineralization potentials.
What is the significance of the Pasfield Lake Project?
The Pasfield Lake Project includes 16 mineral claims and has seen significant investments in infrastructure, enhancing exploration capabilities.
What is the main goal of ATHA Energy's agreements with Terra Uranium?
The agreements aim for T92 to earn rights to explore and potentially acquire significant interests in ATHA's uranium properties, boosting exploration efforts.
How does ATHA Energy plan to drive its exploration efforts?
ATHA intends to leverage past investments, complete required exploratory work, and utilize advanced technologies to drive effective mineral exploration.
Where can more information about ATHA Energy be found?
Additional information about ATHA Energy's operations and projects can be found on their official website.
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