According to the latest top drilling results with grades of sometimes over 50% U3O8, the Canadian uranium explorer IsoEnergy Ltd. (ISIN: CA46500E1079 / TSX-V: ISO) come up again with a mega strong message! As the company has now announced, three of its 14 properties are being outsourced through a ‘Heads of Agreement’ with the Australian company 92 Engery.
Privately owned 92 Energy plans to go public on the Australian stock exchange in 2021. By taking over the claims staked by IsoEnergy in May of this year in the eastern ‘Athabasca Basin’ in Saskatchewan, 92 Energy will be one of the very few companies listed on the ASX with assets in the ‘Athabasca Basin’ after its IPO.
Location, location, location!
With 5,783 hectares, the smallest property under the ‘Gemini’ agreement is located approximately 60 km northeast of the uranium mine ‘Key Lake’. The uranium mine ‘Cigar Lake’ and the property ‘Tower’ with an area of 6,301 hectares are only around 10 km away. With over 40 km of electromagnetic conductors over 40 km, ‘Clover’ has already been identified on the nearby 23,959 hectare property.
Company participation and cash payments!
IsoEnergy will receive common shares in 92 Energy after the initial public offering under the agreement equal to 16.25% of the issued capital. Around 6.5 million ordinary shares will go to IsoEnergy at an issue price of AUD 0.20. The agreement also includes milestone cash payments to IsoEnergy of AUD 100,000 each (approx. CAD 94,000) within 60 days of the IPO and again 6 months later.
IsoEnergy is entitled to nominate one member to the Board of Directors of 92 Energy. In addition, IsoEnergy retains a 2% smelting levy (‘NSR’) on the properties on which 92 Energy is required to invest a total of A $ 1 million in exploration expenditures prior to May 1, 2022.
Craig Parry, IsoEnergy’s President and CEO said:
“IsoEnergy has built up a large property in the eastern Athabasca Basin through land purchases and inexpensive land staking. With the recent surge in our ‘Hurricane’ uranium discovery on the ‘Larocque East’ property, this and our other properties in the ‘Larocque’ Lake District have become our main focus. “
That is why they think it makes sense to cede these newly staked plots to 92 Energy and still participate in the development progress through the shares and cash payments.
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