Athabasca Nuclear Corporation to Acquire Wollaston NE Uranium Project
August 6, 2014 (Source: Marketwired) — Athabasca Nuclear Corporation (TSX VENTURE:ASC) (“Athabasca Nuclear” or the “Corporation”) is pleased to report that it has entered into an agreement to acquire the district-scale Wollaston NE Uranium Project located in Saskatchewan.
“This acquisition distinctively positions Athabasca Nuclear at the heart of one of the most exciting uranium exploration areas in the Athabasca Basin region. Surrounded by the exploration efforts of Northern Uranium and Roughrider Exploration, Athabasca Nuclear has secured what we view as the heart of the Wollaston Northeast uranium trend. We believe this underexplored region on the eastern-side of the Athabasca Basin will receive significant attention over the coming years and are exceptionally pleased to acquire a marquee Eastern Athabasca Basin exploration asset to complement our wide-scale tenure exposure on the western-side of the Athabasca Basin proximate to the Patterson Lake South discovery. This unique project, coupled with our recently announced intent to enter the Pikoo diamond district by way of a merger with Strike Graphite, will help ensure our shareholders achieve high-level working interest exposure to multiple discovery regions,” stated Ryan Kalt, Chairman and Chief Executive Officer of the Corporation.
About the Wollaston NE Uranium Project
Pursuant and subject to the terms of the transaction, Athabasca Nuclear intends to acquire a 100% interest in the Wollaston NE Uranium Project which encompasses approximately 81,000 ha (roughly 200,000 acres) within the prolific Wollaston Tectonic Domain, which itself is host to a majority of current and historic uranium production in the Athabasca Basin. Historic basement hosted mineralization at deposits such as McArthur River and more recent discoveries such as Roughrider and Gryphon demonstrate the potential of this basement domain to host significant uranium occurrences.
A map of the Wollaston NE Uranium Project may be viewed at: http://www.athabascanuclear.com/?attachment_id=801
Favorable basement lithology’s, regional structures, conductors, and a historic boulder with uranium mineralization of 0.72% U3O8 confirm the potential of the Wollaston NE Uranium Project. Exploration efforts going-forward are expected to include a comprehensive analysis of historic data with a view to identifying basement-hosted, structurally-controlled targets similar to those located throughout the Wollaston Domain.
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The Wollaston NE Uranium Project is being acquired from DG Resource Management Ltd. (the “Vendor“), an arm’s length party, who will receive cash consideration of $50,000 ($25,000 upon closing and $25,000 within twelve months of closing) and be issued 1.25 million common shares of Athabasca Nuclear upon closing at a deemed value of $0.06 per common share. The transaction provides for the grant of a 1% production royalty to the Vendor and the assumption of a pre-existing 2% production royalty on the property. The Vendor will also be provided the right to manage, on competitive terms, the exploration programs of the Corporation at the Wollaston NE Uranium Project for a period of twenty-four months from the date of closing. The transaction remains subject to regulatory approval, including approval of the TSX Venture Exchange.
Management cautions that mineralization present on nearby properties is not necessarily indicative of mineralization on the Wollaston NE Uranium Project.
About the Wollaston Northeast Region
The Wollaston Northeast region is the focus of exploration efforts by a number of publicly-traded exploration companies including Northern Uranium Corp. (“Northern Uranium“) and Roughrider Exploration Limited (“Roughrider Exploration“).
Northern Uranium’s Northwest Manitoba uranium project (optioned (up to 80%) from CanAlaska Uranium Ltd. on terms that include exploration spending of up to $11.6 million) has been the focus of past exploration which has produced numerous priority basement-hosted drill targets, some of which are scheduled for inaugural drilling during 2014. Athabasca Nuclear notes that Kelowna-based Northern Uranium benefits from the expertise of Dr. Charles Fipke, who serves as a consultant to Northern Uranium and is a reporting shareholder of Northern Uranium.
Roughrider Exploration’s recent acquisition of up to an 85% interest in the Genesis Project from Kivalliq Energy Corp. will require approximately $5 million in expenditures, cash payments and share issuances. Athabasca Nuclear encourages its shareholders to review the recent Northern Miner article titled, “Roughrider rises again“, available on the Northern Miner website at: http://www.northernminer.com/news/roughrider-rises-again/1003101171/
Both the Northwest Manitoba and Genesis projects are immediately adjacent to the Wollaston NE Uranium Project. See map (http://www.athabascanuclear.com/?attachment_id=801).
The Corporation further reports that according to public data available on Saskatchewan’s MARS system, Kelowna-based Fission 3.0 Corp. submitted a claim application on July 31, 2014 with the Government of Saskatchewan for mineral tenure that, if granted, would tie directly onto the Wollaston NE Uranium Project.
The Corporation is also pleased to report that it has transferred the Operatorship of the Western Athabasca Syndicate to Skyharbour Resources Ltd. Operatorship includes, among other duties, the day-to-day responsibility for aggregating consensus concerning earn-in exploration programs as well as the collection of monies from earn-in parties to finance exploration programs on tenure held respectively by Athabasca Nuclear and Skyharbour Resources. Pursuant to that same agreement, Athabasca Nuclear shall resume the Operator role with respect to claims held by Athabasca Nuclear (which currently comprise nearly all active exploration aspects of the Preston Uranium Project) at the earlier of earn-in by one or more of the optionees (a “JV-Event“) or October 1, 2015 (an “Earn-In Default Event“), whichever occurs first. The syndicate agreement requires the optionees to complete their earn-in on specified Athabasca Nuclear claims in the Western Athabasca not later than September 30, 2015.
“Given our ongoing business growth beyond existing projects, our management team is keen to be able to increase the allocation of its managerial time to additional endeavors where we believe we can advance near-term projects that have significant working interests and capital markets appeal, which in turn may augment discovery potential for our fellow shareholders. Given that we believe the results to-date on our claims are encouraging, we look forward to resuming operatorship on our original tenure next year once we are able to better determine the potential go-forward presence of additional earned-participants. Meanwhile, in addition to those strategic holdings in the Western Athabasca Basin, Athabasca Nuclear’s managerial focus going-forward will include today’s announced Wollaston NE Uranium Project, the previously announced business combination with Strike Graphite Corp, and other opportunities should they arise,” stated Ryan Kalt, Chairman and Chief Executive Officer of the Corporation.
Darren L. Smith, M.Sc., P.Geol., Dahrouge Geological Consulting Ltd., a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
About Athabasca Nuclear Corporation
Athabasca Nuclear Corporation (TSX VENTURE:ASC) is an exploration company based in Calgary, Alberta which is focused on uranium exploration in the Athabasca Basin of Saskatchewan, Canada. The Corporation has also recently announced a proposed business combination with Strike Graphite Corporation.
Ryan Kalt, Chief Executive Officer
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently expected or forecast in such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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