ATHA ENERGY ANNOUNCES $12 MILLION OPTION WITH STALLION DISCOVERIES CORP. FOR EXPLORATION OF SOUTHWESTERN ATHABASCA CLAIMS
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VANCOUVER, BC, July 18, 2023 /CNW/ - ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF) ("ATHA" or the "Company") is pleased to announce that it has signed a definitive agreement (the "Agreement") with Stallion Discoveries Corp. (TSXV: STUD) ("Stallion"), providing Stallion an ability to earn an option (the "Option") to acquire a 70% interest in 47 mineral claims in Saskatchewan, Canada (the "Claims") by acquiring the requisite portion of the Company's current 90% interest, after meeting certain milestones.
The area hosting the Claims is found across the uranium-rich, southwest segment of the Athabasca Basin, which is home to some of the most promising areas for uranium exploration activity within the region.1 The Claims span a total of 547,520 acres and are located in an area that is highlighted by several of the most important uranium discoveries in recent decades.1
Troy Boisjoli, CEO of ATHA commented, "At Atha Energy, our objective is discovery and development of Canada's next generation of world class uranium projects in the Athabasca Basin. With today's announcement, Stallion Discoveries will now have access to over half a million acres of highly prospective property proximal to the largest high-grade uranium discoveries made in the last twenty years. As the largest land holder in the Athabasca Basin, Atha Energy will continue to deploy a multilevel approach to developing projects and creating the most value for its shareholders. It's an exciting time for the uranium sector in Saskatchewan, and we are positioning Atha Energy to be Canada's leading uranium exploration company."
Under the terms of the Agreement, Stallion may acquire a 70% interest in the Claims by meeting certain milestones, including the issuance of common shares in the capital of Stallion to ATHA as well as the accumulation of $12,000,000 in Saskatchewan Exploration Expenditure Credits on the Claims over the course of five (5) years from the effective date (the "Effective Date") of the Agreement. These milestones include:
- Within two days of the Effective Date, Stallion shall issue 3,333,333 Stallion shares to ATHA;
- Within twelve (12) months after the Effective Date, Stallion shall incur $3,311,770 of Saskatchewan Exploration Expenditure Credits towards the exploration of the Claims; and
- Within sixty (60) months after the Effective Date, Stallion shall incur a further $8,688,230 of Saskatchewan Exploration Expenditure Credits towards the exploration of the Claims.
Upon exercise of the option, a joint venture agreement (the "Joint Venture Agreement") shall be entered into by ATHA and Stallion, with Stallion and ATHA (including the carried over interest of the legacy owner) holding a 70% and a 30% interest, respectively.
The Option is subject to the policies of the Canadian Securities Exchange on the part of ATHA, the approval of the TSX Venture Exchange on the part of Stallion, and other customary conditions as set out in the Agreement.
Notes: |
[1] International Atomic Energy Agency Redbook (2022) |
The scientific and technical information contained in this news release as it relates to the Claims have been reviewed and approved by William Yeomans, P.Geo., a "qualified person" as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
ATHA is a mineral exploration company focused on the acquisition, exploration, and development of mineral resource properties. ATHA holds the largest cumulative exploration package in the Athabasca Basin, the world's most prominent basin for uranium discoveries, with 3.4 million acres along with a 10% carried interest portfolio of claims operated by NexGen Energy Ltd. (TSX: NXE) and IsoEnergy Ltd. (TSX‐V: ISO).
For more information visit www.athaenergy.com
Stallion is an exploration company bred to pursue the exploration of large, underexplored land packages located in the best jurisdictions next to world class projects. Stallion is using modern exploration techniques to explore historical and new mineral targets on its expansive land packages in Saskatchewan, Idaho, and Nevada with the singular ambition of making significant discoveries. Our leadership and advisory team are comprised of uranium and precious metals exploration experts with the capital markets experience and the technical talent for acquiring and exploring early-stage properties with highly prospective targets.
For more information visit www.stalliondiscoveries.com
Certain information in this news release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans," "targets," "expects" or "does not expect," "is expected," "an opportunity exists," "is positioned," "estimates," "intends," "assumes," "anticipates" or "does not anticipate" or "believes," or variations of such words and phrases or state that certain actions, events or results "may," "could," "would," "might," "will" or "will be taken," "occur" or "be achieved." In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances including, without limitation, statements regarding the execution of the Agreement and the grant of the Option thereunder, the ability of ATHA and Stallion to complete their obligations thereunder, the success and expectations of any exploration activities conducted on the Claims, exchange approval of the Option, the terms of the Option, the value of any securities of Stallion received by ATHA, the results of the services received by ATHA under the Services Agreement and the ability of Native Ads to execute its obligations thereunder all constitute forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events.
Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by ATHA as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks regarding the uncertain nature of mineral exploration; commodity pricing; stock market volatility and general market conditions; changes in global and regional demand for products; the business prospects of ATHA, Stallion and Native Ads, competition; inflation; trade uncertainties as a result of, among other things, the COVID-19 pandemic, the Russian-Ukrainian war and changes to global trade restrictions and tariffs; the availability of credit on commercially reasonable terms; foreign exchange risks; legal and regulatory risks (including changes in law or regulation); risks related to relationships with stakeholders including any first nations or aboriginal groups; costs of inputs; weather and other acts of god and their impact on activities proposed to by carried on by ATHA, Native Ads or Stallion; and the factors described in greater detail in the "Risk Factors" section of ATHA's final prospectus dated March 23, 2023 available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect ATHA; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. There is no assurance ATHA and Stallion will enter into the Agreement or that ATHA, Stallion and Native Ads will be able to comply with their covenants thereunder and under the LOI and the Services Agreement, as applicable. The forward-looking statements contained in this news release are made as of the date of this news release, and ATHA expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.
Neither the CSE nor its regulation services provider has reviewed or accepted responsibility for the adequacy or accuracy of this release.
SOURCE ATHA Energy Corp.
Mike Castanho, Director, Email: [email protected], Phone: 778-839-6579
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