Belmont Resources Inc (TSX-V:BEA) revealed it is partnering with another Australian company, this time, to advance its Crackingstone uranium project in the Athabasca Basin of Saskatchewan.
The junior said it had struck a binding term sheet on an earn-in deal for the asset with XS Resources - a private exploration company currently applying to list on the Australian Securities Exchange (ASX)
Northern Saskatchewan has the largest reserves of uranium in the world and the project sits on the north shore of Lake Athabasca and 8 kilometres from Uranium City. Between 1953 and 1982, 16 deposits were brought into production in the Uranium City area.
"As with the recent optioning of our Lone Star copper-gold and Kibby lithium properties to Australian Marquee Resources, we are once again excited to partner with yet another Australian resource exploration company, XS Resources, in the development of our Crackingstone Uranium project," noted Belmont’s CEO George Sookochoff in a statement.
READ: Belmont Resources partner Marquee Resources kicks off drilling at the Lone Star project in Washington State
"Within the next two years our option/jv partners are committed to spending over $7,500,000 in exploration on our three projects. This allows Belmont to focus its capital and expertise on its two flagship projects, the Come By Chance (CBC) copper-gold porphyry target and the Athelstan-Jackpot (A-J) gold project," he added.
XSR will pay C$100,000 to Belmont in cash once it receives ASX approval under listing rules. The Australian firm will also spend C$2.5 million on exploration over two years and issue shares to Belmont equivalent to a value of C$250,000 to earn up to an 80% interest in the Crackingstone property.
Sookochoff also highlighted that Belmont will continue to evaluate and acquire further projects in areas of southern British Columbia and northern Washington State.
"2022 is looking to be a very active and exciting year for Belmont and its shareholders!" he added.
Belmont Resources is buying and redeveloping past-producing copper-gold-silver mines in southern British Columbia and northern Washington State - a region considered to have the highest concentration of mineralization and past-producing mines in western North America.
Its project portfolio includes six past-producing mines:
- A-J, B.C – gold-silver mines
- CBC, B.C. – copper-gold mine
- Lone Star, Wa. – copper-gold mine
- Pathfinder, B.C. – gold mines
- Black Bear, B.C. – gold
- Pride of the West, B.C.- gold
- Kibby Basin, Nevada – lithium
- Crackingstone, Saskatchewan – uranium past producing mine
Contact the author at giles@proactiveinvestors.com