Under the option deal, Uracan Resources will initially acquire 51% stake in Clearwater project by spending $3m in exploration expenditures over three years.
To earn an additional 19% stake, the company will have to incur an additional $3m in exploration expenditures within a two year period.
Uracan will offer a 2% net smelter royalty (NSR) to Forum with an option to buy 1% NSR for $1m.
Until the earn-in option is completed, Uracan will finance the exploration work and Forum will be the project operator until Uracan earns 51% interest.
The companies plan to commence a exploration drill program on the project in late summer/early fall in order to test the potential for basement hosted uranium mineralization.
Covering a total of 9,912 hectares, the Clearwater project is adjacent to the south-western edge of the Athabasca Basin and adjoins Fission Uranium’s Patterson Lake South claims on the south-west side and Nexgen Energy’s Rook 1 property to the northeast.
Forum has to date conducted exploration work comprising prospecting, soil and lake radon surveys, lake sediment sampling, airborne EM, magnetic and radiometric surveys, and ground gravity and EM surveys.
In April 2014, a 2,310m drill program was completed and a number of targets were altered and reactivated graphite bearing structures with elevated boron and nickel geochemistry, the company said.
