Pegasus Resources (TSXV: PEGA) this morning released its much anticipated uranium property acquisition news. The firm has entered arrangements to acquire the Pine Channel Uranium Property, which is located within the Athabasca Basin of Saskatchewan.
The property itself was acquired by the company via three separate transactions. At 6,028 hectares in size, the property consists of a total of six mineral claims, located roughly 40 kilometres west of Stony Rapids, Saskatchewan. The property itself is accessible via trails and winter roads from the town.
The six mineral claims were acquired via a series of transactions. The first of which was acquired via a deal with Eagle Plains Resources (TSXV: EPL), while a large claim adjacent to the property to the south was acquired via staking. Finally, the firm has obtained a further four claims from ALX Resources Corp (TSXV: AL) via a binding LOI, which effectively surround the staked claim and the claim acquired from Eagle Plains.
In terms of uranium, the property has seen historic work identify two trends on the property, with the first being 2.5 kilometres long while the second is 600 metres long. The property is said to have a shallow structure, with the basement being just 60 to 100 metres from surface. Previous drilling meanwhile by Denison Mines (TSX: DML) in the ’70’s yielded 0.15% U3O8 over 0.15 metres on a historical basis.
“Despite significant success at the Pine Channel Property, including highly anomalous radioactivity being identified in structurally complex basement rocks, exploration essentially halted in 1981. We are very excited to have acquire this project, which has not only sat idle since the early 80’s, but also which was explored at a time prior to the discovery of uranium in basement rocks such as at NexGen’s Arrow and Fission’s PLS Projects,” commented Charles Desjardins, CEO of Pegasus Resources.
Planning for exploration of the property is said to be underway, with data compilation and review currently ongoing for the property.
In terms of the purchase price, the firm will acquire the claim from Eagle Plains in exchange for a 2% NSR on the property and 500,000 common shares. A 70% interest meanwhile can be earned in the ALX properties via a cash payment of $50,000 and the issuance of 700,000 shares, as well as a commitment to conduct $300,000 in exploratory work on the property over three years.
The remaining 30% can then be purchased from ALX for the four claims in exchange for $200,000 in cash and the issuance of a further 500,000 common shares.
Pegasus Resources last traded at $0.07 on the TSX Venture.
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