The above proposed transaction is subject to the completion of the Definitive Agreement by the parties contemplated to be completed by June 30, and following receipt of regulatory approval to the transaction.
Jordan Trimble, President and CEO of Skyharbour, stated: "This MOU represents one of the final steps in the formation of a four-company JV syndicate that we feel offers the best prospects of making a new uranium discovery in the Patterson Lake region of the Athabasca Basin. Lucky Strike, Noka and Athabasca Nuclear are value-add partners for Skyharbour as they bring with them strong technical expertise, proven management teams and financial capital to help create synergies both in the field and corporately. With the Preston Lake Property, the syndicate's total land package would represent the largest land position in the emerging Patterson Lake area with over 700,000 acres of prospective ground strategically located around Alpha / Fission's recent high grade uranium discovery. In accordance with our plan to utilize the refined exploration methodology that led to the PLS discovery, a regional airborne geophysical survey is underway on our properties which will be followed by field work this summer."
"Skyharbour's management believes this deal is accretive to shareholders as it further improves our chances of making a new discovery with an expanded geological team while mitigating company-specific risk. It provides us with exposure to additional highly prospective land and sets the stage for a minimum of $6,000,000 in combined exploration expenditures over the next two years, $5,000,000 of which is being funded by the partner companies. In the current market environment, we believe this is the most cost-efficient and operationally-effective structure to conduct a large exploratory program without substantial equity dilution to Skyharbour's shareholders."
Preston Lake Property:
The 125,375 hectare Preston Lake Project is centered approximately 26 kilometres southeast of the Patterson Lake South uranium discovery area and is directly contiguous to claims held by Fission Uranium, Forum Uranium and NexGen Energy. The claims are accessible by road with primary access from the all-weather Highway 955, which runs north through the Patterson Lake South discovery through to the former Cluff Lake mine. Some of the property's claims are underlain by Phanerozoic rocks (limestone and sandstone) similar to the Patterson Lake discovery area. At Alpha and Fission's high grade PLS discovery, it is interpreted that the uranium has been mobilized along the fault zones and has been concentrated in the sandstone under the limestone.
Athabasca Nuclear has completed an initial review of historic exploration data on the Preston Lake Property and has identified a number of potential areas for follow up. One high-priority area has clusters of anomalous uranium in lake sediment samples, anomalous uranium values in rock samples (up to 5.6 ppm U3O8), and the presence of kilometre-scale northeast-southwest trending graphitic faults associated with sulphides and anomalous radioactivity as identified with scintillometers. A review of historic data has also identified a significant uranium in lake sediment anomaly in the western part of the property. A sample collected by the Geological Survey of Canada returned a value of 5.4 ppm U3O8, considered to be significant in an area with a background uranium value of 1 ppm U3O8. This high uranium value may indicate either the down-ice glacial transport of uranium boulders from source or an in-situ source of uranium. For comparison, the highest value down-ice from the Patterson Lake South discovery is 3.2 ppm U3O8. Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on these properties.
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