ATHA Energy Enters Multiple Option Arrangements With Terra Uranium

FULL DISCLOSURE: This is sponsored content for ATHA Energy.

ATHA Energy (TSXV: SASK) and Terra Uranium (ASX: T92) appear to be doing a “property swap” of sorts, with the two parties announcing this morning that they are optioning certain projects from one another.

Under the terms of the arrangement, Terra has entered into an option to earn up to a 70% interest in Atha’s Spire and Horizon properties for total consideration of $4.75 million, which is to come in the form of property exploration.

Terra will be required to spend $0.75 million by year end on the properties, while $1.0 per year must be spent on the properties for the next four years in order for Terra to earn a 70% interest. An initial 50% interest will be earned upon the first $2.75 million being spent on the property. Upon a PEA being delivered by Terra, Atha’s carried interest may be converted to a participating interest.

In return, Atha has entered into an arrangement to earn up to a 60% interest in Terra’s Pasfield Lake property, which is found in the Athabasca Basin. The project is said to have seven high priority targets identified on it, with significant anomalous geophysical features identified across multiple depths and lithologies.

READ: ATHA Energy Expands Land Package At Angilak Following 2024 Exploration Program

The option agreements are broken into four separate sections for the Pasfield project, which breakdown as follows:

• For 15%: Fund exploration totaling $1.0 million, or complete one deep hole of at least 1,000 metres into a target before December 31, 2025.
• For an additional 15%: Fund exploration totaling $2.0 million, or complete two deep holes of at least 1,000 metres into a target before December 31, 2026.
• For an additional 15%: Fund exploration totaling $3.0 million, or complete three deep holes of at least 1,000 metres into a target before December 31, 2027.
• For an additional 15%: Fund exploration totaling $4.0 million, or complete four deep holes of at least 1,000 metres into a target before December 31, 2028.

Atha also has the option to convert each milestone into a 1% NSR on the property. Upon completion of the option agreement, the two parties are to enter into a joint venture agreement related to the property.

Atha Energy last traded at $0.64 on the TSX Venture.

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