ATHA Energy Corp (CSE:SASK, OTCQB:SASKF) has signed an option agreement with Riverboat Energy Corporation, granting Riverboat the exclusive option to acquire a 70% interest in ATHA’s Vista property in the Athabasca Basin.
The agreement, effective May 20, 2024, allows Riverboat to earn the interest by fulfilling specified cash payments, share issuances, and exploration expenditures on the Vista property.
This follows a similar agreement ATHA entered with Inspiration Energy Corp in April 2024 for other early-stage exploration projects in the Athabasca Basin.
“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,” said Troy Boisjoli, CEO of ATHA Energy.
“The datasets resulting from those efforts have invited significant interest from other exploration groups, offering capital-efficient upside for our shareholders while we continue to make significant investments into post-discovery projects like Angilak and Gemini.”
To exercise the option on the Vista Property, Riverboat must make cash payments totaling $600,000 to ATHA, including $50,000 within 30 days of the effective date, $350,000 by the Listing Date of Riverboat’s shares on a Canadian stock exchange, and $100,000 by both the second and third anniversaries of the Effective Date.
Riverboat will issue common shares to ATHA valued at $800,000, divided into $600,000 worth of shares on the listing date, and $100,000 worth on both the first and second anniversaries of the effective date.
The group must fund $9.3 million in exploration expenditures on the Vista property over three years, with $500,000 required by the first anniversary, $2.9 million by the second, and $9.3 million by the third anniversary.
Upon fulfilling these conditions, a joint venture agreement will be established with Riverboat holding a 70% interest and ATHA retaining a 30% interest in the Vista Property.
Meanwhile, ATHA Energy continues to progress its 2024 exploration program, focusing on the high-grade uranium Lac 50 Deposit at the Angilak project in Nunavut, the post-discovery high-grade GMZ discovery at the Gemini project in Saskatchewan, and other early-stage projects within the Athabasca Basin.
The company is also evaluating additional properties across its extensive 8.1 million-acre portfolio in Saskatchewan, Nunavut, and Labrador.