Marvel Discovery Corp announced that it has received final approval from the TSX Venture Exchange to proceed with an assumption agreement with District 1 Exploration Corp, pursuant to which District 1 has assigned all of its rights and obligations with respect to a property option agreement dated October 30, 2018, as amended November 23, 2020, whereby District 1 was granted sole and exclusive right and option to acquire a 100% interest in the Highway North property in the Athabasca region of Saskatchewan.
"I am very pleased with the progress we have made in a such short period of time; Marvel has created a portfolio of projects that rivals our peers,” said CEO Karim Rayani. “It's a testament to the way we are setting up Marvel for success. When I started this journey at Key Lake, I partnered with some of the best industry professionals who shared my vision - with a focus on clean energy.”
READ: Marvel Discovery boosts Lac-Saint-Jean land position after survey results from Duhamel property in Quebec
He noted that Marvel is more than a one-commodity company. “The Highway North project is perfectly situated in the right geological setting for basement hosted uranium deposits, such as the Millennium Zone and Key Lake deposits of Cameco.”
He added: “This is a win-win for both District 1 shareholders and Marvel having access to this project which would be nearly impossible to purchase otherwise, we continue to present stakeholders the rare opportunity to participate and have exposure to multi-commodity and critical elements under one umbrella."
The property is located 70 kilometers southwest of the former-producing Key Lake uranium mine. Aptly named for its location along Highway 914, the property consists of five contiguous claims totaling 2,573 hectares.
The Key Lake deposit, which is northeast of the property, consisted of two mineralized zones which historically produced a total of 4.2 million tonnes of product at an average grade of 2.1% U3O8 (Harvey, 1999). Only 21 drill holes have been drilled on the property thus far totaling 3,527m, between 1980 and 2008. Surface exploration and drilling have verified the presence of uranium mineralization along the Highway Zone, with grades up to 2.31% U3O8 over 0.29m in KLR15-086.
The company is not treating these historical results as current and has not completed sufficient work to verify such historical results. Further, the historical production from the Key Lake deposit has not been verified independently by the company.
As consideration for the option, the company has agreed to issue 4,600,000 common shares to District 1 at a price of $0.09 per share. The company will assume all obligations of District 1 under the option agreement to acquire the property including, issuing a total of 1,250,000 shares to the owner of the property, paying a total of $115,000, and incurring a total of $650,000 of expenditures on the property, over time.
Contact Ritika at ritika@proactiveinvestors.com