Forum Energy (TSXV: FMC) has optioned off part of its interest in a joint venture with NexGen Energy (TSX: NXE), which itself is in a joint venture for the Northwest Athabasca project.
Forum Energy currently holds a 62.2% interest in the Forum NexGen JV, while the Forum NexGen JV holds a 69.95% beneficial interest in the Northwest Athabasca Joint Venture. Cameco Corp (TSX: CCO) and Orano Canada own the remaining interest in the Northwest Athabasca Project.
Forum has elected to option off up to 75% of its interest in the joint venture with NexGen to that of Global Uranium (CSE: GURN), a newly listed equity on the Canadian Securities Exchange. Global Uranium, with a market capitalization of just $2.43 million as of this morning, has agreed to an option agreement that will see the firm pay up to $20 million for the interest in the joint venture.
The option agreement has been broken into two stages. The first stage will see Global acquire a 51% interest in the asset by making staged payments of $225,000 by December 31, 2027, as well as issued 1.0 million shares by the same date. The company will also be subjected to pay a minimum of $3.9 million and up to $9.0 million for exploration on the project between 2025 and 2028, depending upon cash calls from the projects joint venture partners.
The second stage would see Global acquire a further 25% interest in Forum’s ownership of the joint venture, which would be completed via the covering of payments on exploration conducted from 2029 through to 2031, subject to a minimum of $4.75 million and a maximum of $9.0 million.
READ: Forum Energy Metals Mobilizes For 10,000 Metre Drill Program In Thelon Basin
Forum Energy is to remain the operator of the Northwest Athabasca Joint Venture during the initial option period.
The Northwest Athabasca Project consists of 11 claims covering 13,845 hectares, and contains the Maurice Bay deposit with a historical resource of 1.5 million pounds U3O8 at 0.6%, as well as the Zone 2A basement-hosted showing which has had drill intercepts including 5.68% U3O8 over 8.5 metres.
Forum Energy Metals last traded at $0.135 on the TSX Venture.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
