ATHA Energy Corp. (TSX.V: SASK) (FRA: X5U) (OTCQB: SASKF) (“ATHA” or the “Company”), holder of the largest uranium exploration portfolio in two of the highest-grade uranium districts in the world, is pleased to announce it has entered into a definitive option agreement (the “Option Agreement”) dated effective May 20th, 2024 (the “Effective Date”), with Riverboat Energy Corporation (“Riverboat”) a privately held Canadian exploration company. The Option Agreement grants Riverboat an exclusive option (the “Option”) to acquire an undivided 70% interest in ATHA’s Vista property (the “Vista Property”), situated within the Company’s East Rim Exploration District, located in the Athabasca Basin, Saskatchewan. The Option Agreement is subject to Riverboat fulfilling the option considerations and exploration expenditures detailed in the Option Agreement.
The Option Agreement on the Vista Property follows the similarly announced deal with Inspiration Energy Corp., as announced in the press release of the Company dated April 24, 2024, on two of its other early-stage exploration projects within the Athabasca Basin. These agreements are a result of the work the Company completed during its maiden 2023 Exploration Program, which successfully completed a total of seventeen EM surveys across its 4.1 million-acres of prospective exploration portfolio in the Athabasca Basin. The 2023 program identified hundreds of kilometres of prospective structural corridors and numerous highly prospective targets. ATHA’s exploration portfolio in the Athabasca Basin is divided into four exploration districts (each, an “Exploration District” and together the “Exploration Districts”): Cable Bay, East Rim, North Rim, and West. These Exploration Districts represent all past producing, currently producing, and developing uranium mining camps in the Basin. ATHA is continuing progress on it 2024 Exploration Program focusing on the Angilak Project – which host’s the high-grade uranium Lac 50 Deposit – in Nunavut, the post discovery high-grade uranium GMZ Discovery at the Gemini Project located in Saskatchewan, and its portfolio of early-stage Athabasca Basin exploration projects. The Company will continue to evaluate additional properties across its 8.1 million-acres of prospective mineral claims which cover Canada’s three top uranium jurisdictions – Saskatchewan, Nunavut, and Labrador – for additional strategic partnerships.
Troy Boisjoli, CEO of ATHA Energy commented: “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.”
OPTION TERMS
In accordance with the terms of the Option Agreement, Riverboat can earn a 70% undivided interest (subject to underlying 2.0% NSR royalties on the Vista Property) in the Vista Property by making cash payments to ATHA, issuing common shares of Riverboat to ATHA, and completing expenditures on the Vista Property, each as described below.
Upon exercise of the option, a joint venture agreement shall be entered into by ATHA and Riverboat, with Riverboat and ATHA (including the carried over interest of the legacy owner) holding a 70% and a 30% interest, respectively.
The Option Agreement is subject to the policies of the TSX Venture Exchange on the part of ATHA, and other customary conditions as set out in the Option Agreement.
Source: Company Press Release
