Oct. 11 at 11:11 AM
$SASKF
Atha Energy announces option agreements with Terra Uranium
ATHA Energy and Terra Uranium have executed a definitive option agreement for T92 to earn an option to acquire a 70% interest in ATHA's Spire and Horizon properties and a definitive option agreement for ATHA to earn an option to acquire up to a 60% interest in T92's Pasfield Lake property.
In accordance with the terms of the Option Agreement ATHA shall grant T92 the sole and exclusive right and option to acquire up to a 70% interest in the Spire Horizon Projects in consideration for incurring a minimum of
$4,750,000 exploration expenditures as set out below: on or before December 20, 2024, T92 must incur at least
$750,000 of statutory exploration expenditure, which must also include the costs associated with the payment for a mineral exploration assessment report; on or before September 21, 2025, T92 must incur additional statutory exploration expenditures of at least
$1,000,000; on or before September 21, 2026, T92 must incur additional statutory exploration expenditures of at least
$1,000,000; on or before September 21, 2027, T92 must incur additional statutory exploration expenditures of at least
$1,000,000; and on or before September 21, 2028, T92 must incur additional statutory exploration expenditures of at least
$1,000,000.
ATHA and T92 agree to form a joint venture on the Spire Horizon Projects upon the satisfaction of the First Expenditure, Second Expenditure, and the Third Expenditure, with the initial interest of T92 being a 50% participating interest and ATHA's being a 50% carried interest. Upon the satisfaction of the Fourth Expenditure and the Fifth Expenditure, T92's interest will increase to a 70% participation interest and ATHA's interest will adjust to a 30% participation interest.
If at any time during the period where ATHA holds a carried interest, T92 prepares and delivers a "preliminary economic assessment" prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects in respect of the Spire Horizon Projects to ATHA, ATHA's carried interest may be converted into a participating interest at the election of ATHA. In accordance with the terms of the Option Agreement, T92 shall grant to ATHA the four exclusive and separate rights and options to acquire undivided legal and beneficial interests in the Pasfield Project as follows: an undivided 15% interest in the Pasfield Project, which may be exercised by either: funding exploration expenditures totalling
$1,000,000 or successfully completing one deep hole of at least 1,000 m into the geophysical target on or before December 31, 2025; an undivided 15% interest for a total of 30% interest in the Pasfield Project, which may be exercised by either:
funding exploration expenditures totalling
$2,000,000 or successfully completing two deep holes of at least 1,000 m into the geophysical target on or before December 31, 2026; an undivided 15% interest in the Pasfield Project, which may be exercised by either: funding exploration expenditures totalling
$3,000,000 or successfully completing three deep holes of at least 1,000 m into the geophysical target on or before December 31, 2027; and an undivided 15% interest in the Pasfield Project which may be exercised by either: funding exploration expenditures totalling
$4,000,000 or successfully completing four deep holes of at least 1,000 m into the geophysical target on or before December 31, 2028.
After exercising each Pasfield Option and upon written notice by ATHA to T92, each undivided 15% interest in the Pasfield Project can, at ATHA's election, be converted into a 1% net smelter returns royalty for an aggregate maximum NSR of 4%. Upon the satisfaction of the Fourth CP Option and assuming ATHA has not converted its interests in the Pasfield Project into a NSR, the parties will be deemed to form a joint venture on the Pasfield Project with T92 holding an initial 40% participating interest in the Pasfield Joint Venture and ATHA holding a 60% participation interest. ATHA will also have the sole and exclusive right to access and use all camp facilities located on the Pasfield Project for a daily fee to be negotiated between ATHA and T92.