Subscribe
Be the first with the news that moves the market- Traction Uranium (TRAC) has announced a property option agreement with Forum Energy Metals to acquire up to a 100 per cent interest in the Grease River Property
- The agreement is divided into three separate phases, each involving cash payments, share issuances and the funding of exploration expenditures
- The Grease River Project consists of two separate claim blocks in the Athabasca Basin
- Traction Uranium Corp. is in the business of mineral exploration and the development of discovery prospects in Canada
- Traction Uranium Corp. (TRAC) opened trading at C$0.59
Traction Uranium (TRAC) and Forum Energy Metals have announced a property option agreement.
Under the agreement, Traction Uranium has the option, to acquire up to a 100 per cent interest in the Grease River Property located in Athabasca Basin, Northern Saskatchewan, in exchange for a series of cash payments, share issuances and funding of exploration expenditures, separated into three phases.
Under the first phase, the company may acquire a 51 per cent interest in the property by paying $250,000 in cash, issuing1,625,000 common shares and funding $3,000,000 in exploration expenditures on the property by December 31, 2025.
Forum will remain the operator of the property until the companycompletes the first phase.
Under the second phase, the company can acquire an additional 19 per cent interest in the Property, for a total interest of 70 per cent by paying $700,000 in cash, issuing 2,500,000 shares and funding an additional $3,000,000 in exploration expenditures on the property by December 31, 2027.
Lastly, the company can acquire the remaining interest in the property by paying $1,000,000 in cash, issuing 3,000,000 shares and funding $3,000,000 in exploration expenditures by December 31, 2028.
If the third option is exercised, the company would also be required to grant Forum Energy a 2 per cent net smelter returns royalty.
Lester Esteban, Chief Executive Officer of Traction, commented on the agreement.
“Our research team has been hard at work to complete the Hearty Bay “Quartz Degradation” research program and we are looking forward to providing the results once our team has finalized their report. With our Hearty Bay Project nearby, the Grease River Project is an exciting addition where we are looking to acquire 100% of the property and our interest in unlocking the uranium discovery potential in the Fond du Lac area. We look forward to bringing together our technical advisor Boen Tan Ph.D., P. Geo with Forum’s Dr. Rebecca Hunter Ph.D., P.Geo. and Ken Wheatley P. Geo., M.Sc. on this project, an esteemed team with a combined 100+ years of uranium exploration experience and numerous discoveries under their belt.”
Richard Mazur, President & CEO of Forum Energy Metals added,
“We are pleased to work with the Traction team to unlock the potential to host new, large uranium deposits along this underexplored, favourable structural corridor.”
The Grease River Project consists of two separate claim blocks situated along the NE-trending Grease River Shear zone. The nearby Fond du Lac uranium deposit was previously discovered within the shear zone by Amok and Eldorado in the 1970s with an estimated non-compliant historical resource of one million pounds uranium at an average grade of 0.25% U3O8*. The Grease River Project claims are located along trend of the deposit to the southwest and northeast. Limited exploration has been conducted in the property area and there is potential for additional uranium mineralization along the shear zone. Airborne geophysical surveys are planned in 2023 to aid in structural mapping and to define prospective drill targets.
Traction Uranium Corp. is in the business of mineral exploration and the development of discovery prospects in Canada, including its two flagship uranium projects in the Athabasca Region.
Traction Uranium Corp. (TRAC) opened trading at C$0.59.
