ATHA Energy Options Out 70% Of Vista Project For $10.7 Million In Total Consideration
FULL DISCLOSURE: This is sponsored content for ATHA Energy.
ATHA Energy (TSXV: SASK) has entered into another agreement to option off a portion of its massive 4.1 million acre prospective land package in the Athabasca Basin.
Riverboat Energy, a currently private exploration company, has agreed to option the 30,265 hectare Vista property, found within the East Rim Exploration district of ATHA’s Athabasca portfolio. The arrangement will see Riverboat earn up to a 70% interest in the property.
Total consideration under the option arrangement amounts to $10.7 million, which is to include $600,000 in cash payments, $800,000 in Riverboat stock, and $9.3 million in exploration work over a three year period.
READ: Atha Energy Options Out Two Properties For 9% Interest In Explorer, $8 Million In Spend
The first year of exploration work is expected to see a minimum of $500,000 in exploration conducted, while the second year will see an aggregate $2.9 million spent on the project. A 2% NSR royalty is also in place on the property.
Following the completion of the option agreement, the two parties are expected to enter in to a joint venture agreement for the property.
READ: ATHA Energy Set To Begin 10,000 Metre Drill Program At Angilak In June
“In 2023, ATHA invested in the largest-ever EM survey in the Athabasca Basin, providing the Company with hundreds of kilometers of prospective corridors to further investigate for uranium mineralization in the preeminent location for large-scale uranium discoveries. The datasets resulting from those efforts have invited significant interest from other exploration groups eager to further explore our early-stage properties, offering capital-efficient upside for our shareholders while we continue to make significant investments into post-discovery projects like Angilak and Gemini,” commented ATHA CEO Troy Boisjoli on the development.
ATHA Energy last traded at $0.76 on the TSX Venture.
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