Atha Energy Agrees to Terms on $10.7 Million Option Agreement with Riverboat Energy Corporation for Vista Project
HIGHLIGHTS
- Option Agreement provides Riverboat Energy Corp. an opportunity to acquire a 70% interest in ATHA’s early-stage Vista Property (30,265 Ha), located in the Athabasca Basin, by fulfilling a total of $9.3 million in exploration expenditures on the property by May 20th, 2027
- Terms of Option Agreement exercise include Riverboat making aggregate cash payments equal to $600,000 to ATHA, between 30 days from the effective date and May 20th, 2027
- Terms of Option Agreement exercise include Riverboat issuing common shares in Riverboat to ATHA having an aggregate value of $800,000, to be paid in specified increments, prior to May 20th, 2026
VANCOUVER, British Columbia, May 28, 2024 (GLOBE NEWSWIRE) -- ATHA Energy Corp. (TSX.V: SASK) (FRA: X5U) (OTCQB: SASKF) (“ATHA” or the “Company”), holder of the largest uranium exploration portfolio in two of the highest-grade uranium districts in the world, is pleased to announce it has entered into a definitive option agreement (the “Option Agreement”) dated effective May 20th, 2024 (the “Effective Date”), with Riverboat Energy Corporation (“Riverboat”) a privately held Canadian exploration company. The Option Agreement grants Riverboat an exclusive option (the “Option”) to acquire an undivided 70% interest in ATHA’s Vista property (the “Vista Property”), situated within the Company’s East Rim Exploration District, located in the Athabasca Basin, Saskatchewan. The Option Agreement is subject to Riverboat fulfilling the option considerations and exploration expenditures detailed in the Option Agreement.
The Option Agreement on the Vista Property follows the similarly announced deal with Inspiration Energy Corp., as announced in the press release of the Company dated April 24, 2024, on two of its other early-stage exploration projects within the Athabasca Basin. These agreements are a result of the work the Company completed during its maiden 2023 Exploration Program, which successfully completed a total of seventeen EM surveys across its 4.1 million-acres of prospective exploration portfolio in the Athabasca Basin. The 2023 program identified hundreds of kilometres of prospective structural corridors and numerous highly prospective targets. ATHA’s exploration portfolio in the Athabasca Basin is divided into four exploration districts (each, an “Exploration District” and together the “Exploration Districts”): Cable Bay, East Rim, North Rim, and West. These Exploration Districts represent all past producing, currently producing, and developing uranium mining camps in the Basin. ATHA is continuing progress on it 2024 Exploration Program focusing on the Angilak Project – which host’s the high-grade uranium Lac 50 Deposit – in Nunavut, the post discovery high-grade uranium GMZ Discovery at the Gemini Project located in Saskatchewan, and its portfolio of early-stage Athabasca Basin exploration projects. The Company will continue to evaluate additional properties across its 8.1 million-acres of prospective mineral claims which cover Canada’s three top uranium jurisdictions – Saskatchewan, Nunavut, and Labrador – for additional strategic partnerships.
Troy Boisjoli, CEO of ATHA Energy commented: “In 2023, ATHA invested in the largest-ever EM survey in the Athabasca Basin, providing the Company with hundreds of kilometers of prospective corridors to further investigate for uranium mineralization in the preeminent location for large-scale uranium discoveries. The datasets resulting from those efforts have invited significant interest from other exploration groups eager to further explore our early-stage properties, offering capital-efficient upside for our shareholders while we continue to make significant investments into post-discovery projects like Angilak and Gemini.”
OPTION TERMS
In accordance with the terms of the Option Agreement, Riverboat can earn a 70% undivided interest (subject to underlying 2.0% NSR royalties on the Vista Property) in the Vista Property by making cash payments to ATHA, issuing common shares of Riverboat to ATHA, and completing expenditures on the Vista Property, each as described below.
Riverboat may exercise the option on the Vista Property by satisfying all of the following conditions:
- Making an aggregate of $600,000 in cash payments to ATHA as follows:
- $50,000 on or before the date that is 30 days from the Effective Date;
- $350,000 on or before the date (the “Listing Date”) on which the common shares of Riverboat are listed for trading on a Canadian stock exchange;
- $100,000 on or before the second anniversary of the Effective Date; and
- $100,000 on or before the third anniversary of the Effective Date.
- The issuance to ATHA of such number of common shares (each, an “Option Share”) in the capital of Riverboat equal to the quotient obtained by dividing $800,000 by the Price per Share, as follows:
- such number of Option Shares equal to the quotient obtained by dividing $600,000 by the Price per Share issuable on the Listing Date;
- such number of Option Shares equal to the quotient obtained by dividing $100,000 by the Price per Share issuable on or before the first anniversary of the Effective Date; and
- such number of Option Shares equal to the quotient obtained by dividing $100,000 by the Price per Share issuable on or before the second anniversary of the Effective Date.
For the purpose of this section, “Price per Share” means the issue price per share (or unit) in connection with an arm’s length common share (or unit) equity financing completed by Riverboat prior to the issuance of the Option Shares.
- Incurring and funding aggregate expenditures in the amount of $9,300,000 on the Vista Property over a three-year period, as follows:
- Riverboat shall have incurred and funded a minimum of $500,000 of expenditures on the Vista Property on or before the first anniversary of the Effective Date;
- Riverboat shall have incurred and funded not less than an aggregate of $2,900,000 of expenditures on the Vista Property on or before the second anniversary of the Effective Date; and
- Riverboat shall have incurred and funded not less than an aggregate of $9,300,000 of expenditures on the Vista Property on or before the third anniversary of the Effective Date.
Upon exercise of the option, a joint venture agreement shall be entered into by ATHA and Riverboat, with Riverboat and ATHA (including the carried over interest of the legacy owner) holding a 70% and a 30% interest, respectively.
The Option Agreement is subject to the policies of the TSX Venture Exchange on the part of ATHA, and other customary conditions as set out in the Option Agreement.
Figure 1: Vista Property relative to ATHA’s Athabasca Basin land claims
Qualified Person
The scientific and technical information contained in this news release have been reviewed and approved by Cliff Revering, P.Eng., the Vice President, Exploration of ATHA, who is a "qualified person" as defined under National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About ATHA
ATHA is a Canadian mineral company engaged in the acquisition, exploration, and development of uranium assets in the pursuit of a clean energy future. With a strategically balanced portfolio including three 100%-owned post discovery uranium projects (the Angilak Project located in Nunavut, and CMB Discoveries in Labrador hosting historical resource estimates of 43.3 million lbs and 14.5 million lbs U3O8 respectively, and the newly discovered basement hosted GMZ high-grade uranium discovery located in the Athabasca Basin). In addition, the Company holds the largest cumulative prospective exploration land package (8.1 million acres) in two of the world’s most prominent basins for uranium discoveries - ATHA is well positioned to drive value. ATHA also holds a 10% carried interest in key Athabasca Basin exploration projects operated by NexGen Energy Ltd. and IsoEnergy Ltd. For more information visit www.athaenergy.com.1,2,3.
About Riverboat Energy Corporation
Riverboat Energy Corp. is a private exploration company focused on the natural resources sector. The Company’s principal focus is to explore and advance the Lake Nipigon, Vista, and St. Martin projects which are all located in Canada.
For more information, please refer to Riverboat’s information available on SEDAR+ (www.sedarplus.ca).
For more information, please contact:
Troy Boisjoli
Chief Executive Officer
Email: info@athaenergy.com
www.athaenergy.com