ATHA Energy Corp (CSE:SASK, OTCQB:SASKF) announced on Tuesday that it has signed a non-binding letter of intent (LOI) with Australian-listed Terra Uranium Ltd (ASX:T92) for a potential joint venture on key uranium exploration projects in Saskatchewan's Athabasca Basin.
The proposed deal involves an option for Terra Uranium to acquire a 70% interest in ATHA’s Spire and Horizon properties, while ATHA could gain up to a 60% stake in Terra Uranium's Pasfield Lake property.
The Spire Horizon projects, spanning 60,965 hectares, are located within the Needle Falls Shear Zone, an area known for uranium mineralization. Recent surveys have identified 144 km of cumulative conductors, indicating strong potential for uranium deposits. The properties also show prospects for high-grade copper.
Meanwhile, the Pasfield project, covering 68,768 hectares, is positioned within the Cable Bay Shear Zone. Terra Uranium's previous exploration work has identified significant uranium and helium anomalies, suggesting the presence of uranium mineralization.
Under the terms outlined in the LOI, Terra Uranium would earn its interest in the Spire Horizon projects by investing up to $4.75 million in exploration over five years. In exchange, ATHA could acquire up to a 60% interest in the Pasfield project by meeting specific exploration milestones.
The companies are now working towards finalizing a definitive agreement, subject to due diligence and regulatory approvals.