Under the deal, Athabasca Nuclear will acquire all the issued and outstanding common shares of Strike while Strike shareholders will receive one common share of Athabasca Nuclear for each share in Strike.
The new entity would focus on the Preston Lake uranium and the Sask Craton diamond projects.
Athabasca Nuclear will own around 73.9% stake and Strike shareholders would own the remaining share of the new company.
Athabasca Nuclear chairman and CEO Ryan Kalt said: "This proposed transaction offers valuable benefits to the current shareholders of both Athabasca Nuclear and Strike.
"Not only will a combined entity present a superior fiscal situation, but it will also uniquely capture and focus the interest of the capital markets in two of Canada’s emerging resource plays, the SW Athabasca Basin and the Sask Craton, into a single listed vehicle."
Subject to court approval, the transaction is expected to close on or before 20 September 2014.
Athabasca Nuclear is a partner in the Western Athabasca Syndicate, which manages the Preston uranium project.
The early-stage Sask Craton and Sask Craton North diamond exploration properties have been approved by the TSX venture exchange. The properties consist of a mineral tenure base of approximately 1,300,000 acres.
