Blue Sky Uranium Corp. (TSX-V:BSK, OTCQB:BKUCF) announced a binding term sheet with Corredor Americano SA to option the Ivana Uranium-Vanadium Deposit in Argentina.
Under the proposed transaction, COAM can earn a 50% indirect interest in Ivana by investing up to $35 million and advancing the deposit through feasibility studies and exploration of adjacent areas.
A positive feasibility study allows COAM an additional 1% interest, conditional on funding the project's capital costs. Further, COAM can secure a total 80% interest by covering all costs to achieve commercial production.
The Ivana deposit has indicated mineral resources of 19.7 Mt at 333 ppm U (0.039% U3O8) and 105 ppm V (0.019% V2O5), and inferred mineral resources of 5.6 Mt at 262 ppm U (0.031% U3O8) and 109 ppm V (0.019% V2O5).
A preliminary economic assessment confirms the viability of a mining operation using surficial methods, with potential for resource expansion in the Ivana area.
The proposed transaction provides “compelling benefits” for Blue Sky by outlining a path to production at Ivana, Blue Sky CEO Nikolaos Cacos told investors.
After COAM secures an initial 50% interest by advancing Ivana to the feasibility phase, Blue Sky will be free-carried on the estimated capital costs while COAM earns an additional 30% interest in the project, Cacos explained.
The CEO added that Blue Sky is “benefiting from substantial investment towards exploration at adjacent properties, with the potential for new discoveries to be purchased" by the joint venture company in the future.
“We look forward to completing the agreement and quickly moving Ivana forward through the next stages."
The transaction outlines a 90-day period for negotiating definitive agreements, contingent on due diligence and final approvals, including from the TSX Venture Exchange and Blue Sky shareholders. The agreement features a first demand corporate guarantee from COAM and a shareholders' agreement governing the joint venture entity.
COAM, part of the Corporación América Group, brings a diversified investment portfolio across Latin America and Europe, with significant holdings in energy, infrastructure, and technology sectors.