en.Wedoany.com Reported - Purecore Metals Inc. and Skyharbour Resources Ltd. have signed a definitive option agreement, allowing the former to earn up to a 100% interest in the Yurchison uranium project, located in the Athabasca Basin in northern Saskatchewan, Canada. The property comprises 22 mineral claims covering approximately 35,028.93 hectares, subject to a 2.0% net smelter returns royalty (NSR royalty).
The Yurchison project is situated approximately 75 kilometers south of Cameco Corporation's Rabbit Lake operation, with Highway 905 traversing the claims. The underlying geology consists of Wollaston Supergroup metasedimentary gneisses, including graphitic gneiss units. Exploration history dates back to the 1960s through the 1980s, including airborne geophysical surveys, ground prospecting, mapping, sampling, and drilling. Historical sampling has returned uranium grades of 0.09% to 0.30% U₃O₈ and molybdenum grades of 2,500 to 6,400 ppm in outcrop and boulder samples. The claims are prospective for uranium, uranium-thorium-rare earth element, and copper-lead-zinc mineralization. Most exploration was completed prior to 2000, with limited follow-up work since then, leaving much of the property underexplored. In 2022 and 2023, airborne electromagnetic (VTEM and VLF-EM), magnetic, and radiometric surveys were completed over the area.
Peter Berdusco, President and CEO of Purecore, stated that as artificial intelligence, data centers, and broader electrification drive accelerating global electricity demand growth, nuclear energy's role in meeting this demand is becoming increasingly important, thereby strengthening the long-term outlook for uranium. The Yurchison project, located in the Athabasca Basin, a world-class uranium jurisdiction, offers convenient access and low exploration maturity, providing Purecore with a significant strategic opportunity. Jordan Trimble, President and CEO of Skyharbour, stated that this option agreement helps execute the strategy of unlocking asset value through strategic partnerships, and looks forward to advancing the Yurchison project together with Purecore.
Under the option agreement, Purecore will earn an initial 70% interest in the claims (subject to the 2.0% NSR royalty) by making staged cash payments totaling CAD 350,000, issuing common shares with an aggregate value of CAD 700,000 (with the consideration shares priced at the 20-day volume-weighted average price of the company's shares on the CSE at the time of issuance, subject to CSE minimum pricing rules), and incurring at least CAD 3.5 million in exploration expenditures. Specifically, within 5 business days of the Exchange acceptance date, a cash payment of CAD 50,000 and shares valued at CAD 100,000 are due; on or before the first anniversary, a cash payment of CAD 100,000, shares valued at CAD 200,000, and at least CAD 500,000 in exploration expenditures are required; on or before the second anniversary, a cash payment of CAD 100,000, shares valued at CAD 200,000, and an additional CAD 1 million in exploration expenditures are required; and on or before the third anniversary, a cash payment of CAD 100,000, shares valued at CAD 200,000, and an additional CAD 2 million in exploration expenditures are required. Exploration expenditures exceeding the required amounts in any period may be carried forward to subsequent periods, and any shortfall in expenditures may be satisfied through cash payments.
Upon earning the initial 70% interest, Purecore has the option to earn an additional 30% interest, for a total of 100% interest (subject to the 2.0% NSR royalty). The conditions require, within 30 business days of earning the initial 70% interest, an additional cash payment of CAD 3 million and the issuance of consideration shares valued at CAD 3 million, priced at the 20-day VWAP at the time of issuance (subject to CSE minimum pricing rules and a 10% shareholding limit). If Purecore elects not to acquire the additional 30% interest, the parties may form a joint venture on terms to be agreed upon. Additionally, Purecore has the right, at any time, to pay Skyharbour CAD 1 million to purchase half of the NSR royalty. The transaction is subject to regulatory approvals, including from the Canadian Securities Exchange (CSE).
